Reliance Industries is in the process of demerging its financial services business and has called for a shareholder and creditors meet scheduled to be held on 2nd May 2023.
The meeting is being called as per an order by the Mumbai Bench of the National Company Law Tribunal. After the demerger, the name of the Reliance Strategic Investments (RSIL) shall be changed to Jio Financial Services Limited.
Reliance Industries has approved the scheme of arrangement between RIL and RSIL last October. Mukesh Ambani announced the demerger of its financial services business into a separate entity and subsequent listing it on the stock exchanges last year. The demerger will be done through a share-swap arrangement. Hence, RIL shareholders will get one share of Jio financial services for every share they hold in RIL.
RIL's investment in Reliance Industrial Investments and Holdings (RIIHL), which is a part of the financial services holdings will be transferred to Jio Financial services. Currently, RIIHL is the ultimate beneficiary of 6.1% RIL shares through its interest in Petroleum Trust and Reliance Services and Holdings.
As per Economic Times, Jio Financial Services plans to launch a consumer and merchant lending business to complement and supplement the traditional credit bureau-based underwriting