Reliance Industries Ltd to demerge financial services unit, to list it as Jio Financial Services
The Hindu
JFSL would be listed on the Indian stock exchanges. RSIL is currently a wholly-owned subsidiary of RIL and is a RBI-registered non-Deposit taking Systemically Important (ND-SI) Non-Banking Financial Company.
The Board of Directors of Reliance Industries Ltd (RIL), at its meeting held on Friday, approved a Scheme of Arrangement amongst RIL, Reliance Strategic Investments Ltd (RSIL) and their respective shareholders and creditors in terms of which, RIL will demerge its financial services undertaking into RSIL {to be renamed Jio Financial Services Ltd (JFSL)}.
JFSL would be listed on the Indian stock exchanges. RSIL is currently a wholly-owned subsidiary of RIL and is a RBI-registered non-Deposit taking Systemically Important (ND-SI) Non-Banking Financial Company.
Pursuant to the Scheme, shareholders of RIL will receive one equity share of JFSL of face value Rs 10 for one fully paid-up equity share of Rs 10 held in RIL.
The Board has approved the Entitlement Ratio based on the recommendations of the independent valuer and merchant bankers.
The investment of RIL in Reliance Industrial Investments and Holdings Limited (RIIHL), which is a part of the financial services undertaking of RIL, will stand transferred to JFSL.
RIIHL is the ultimate beneficiary of 6.1% RIL shares through its interest in Petroleum Trust and Reliance Services and Holdings Ltd.