Billionaire Mukesh Ambani-led Reliance Industries Limited’s shareholders, with its secured and unsecured creditors, on May 4 permitted the demerger of the company’s financial services firm – Reliance Strategic Ventures. The firm will now be renamed Jio Financial Services Limited.
The shareholders of Reliance Industries would receive one share of Jio Financials for every share they hold in the parent company, said the oil-to-telecom major in a regulatory filing to the stock exchanges.
The votes were 99.9994 per cent in the favour of resolution in the case of unsecured creditors and equity shareholders and 100 per cent in the case of secured creditors.
In October 2022, Reliance approved the demerger of the financial services arm named Jio Financial Services. Through the demerger scheme, Jio Financial Services will acquire liquid assets to provide adequate regulatory capital for lending to consumers, merchants, etc., and to incubate other financial services verticals such as insurance, payments, digital broking, asset management for at least the next three years of business operations.
Jio Financial Services plans to launch consumer and merchant lending business based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting.
It will continue to evaluate organic growth, joint-venture partnerships as well as inorganic opportunities in insurance, asset management and digital broking segments.
