RIL promoters, shareholders approve demerger of financial services arm

In a filing with the stock exchanges, RIL said that it received a 99.9 per cent of votes in favour of the demerger in a shareholders’ meeting that happened on May 2, i.e., Tuesday.

RIL has issued one share of the demerged company with a value of Rs 10 each for every share they hold in Reliance Industries, the company in the stock exchange filing.

Post demerger, RSIL will be rechristened as Jio Financial Services Ltd (JFSL).

The Ambani-owned group has last year in October approved the demerger of the financial services arm.

Currenlty, RSIL is a wholly-owned subsidiary of RIL and is an RBI-registered non-deposit-taking systemically important non-banking financial company. KV Kamath, former MD and CEO of ICICI Bank, will take over as the non-executive chairman of Jio Financial Services, whose shares will be listed on both, the BSE and the National Stock Exchange.

“JFS will be a truly transformational, customer-centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians,” RIL CMD Mukesh Ambani October last year said, while announcing the demerger.

He had added, “JFS is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions.”

At the time of publishing, RIL’s shares were trading 0.90 per cent higher on BSE.