Reliance Industries Calls For Creditors, Shareholders To Meet On 2 May

Reliance Industries has announced it will be demerging its financial services business by calling for a meeting of creditors and shareholders. The company says shareholders will receive one share in the new demerged entity for every share held in Reliance Industries.

The secured and unsecured creditors and the shareholders of Reliance Industries will be meeting on May 2 to approve the scheme of demerger. After the demerger, Reliance Strategic Investments, which will be renamed Jio Financial Services, will be listed on the NSE and BSE.

The approval of the board for the demerger came in October last year when the company announced that Reliance Strategic Investments would be renamed Jio Financial Services. 

The financial services business of the company consists of Reliance Retail Finance, Reliance Payment Solutions, Jio Information Aggregator Services and Reliance Retail Insurance Broking to Reliance Strategic Investments and Jio Payments Bank, and Reliance Industrial Investments and Holdings, the investment arm of RIL.

RIL said that transfer of its investment in Jio Payments Bank, will be under Reserve Bank of India regulations.

Reliance has announced that it will spin off its financial services business into a separate entity in order to explore different growth opportunities. This move would allow the business to attract different investors, partners and other stakeholders who are interested in it specifically. As a separate entity, it would have greater leverage which would also benefit Reliance Industries' shareholders. The financial services business of RIL and Reliance Strategic Investments generated revenue of 1.55 billion rupees in 2021-22.