RIL Gets Nod From Shareholders, Creditors To Demerge Financial Services Arm

Mukesh Ambani on Wednesday received the approval of shareholders and creditors of Reliance Industries Ltd (RIL) to demerge the company and Reliance Strategic Investments Ltd (RSIL). In the shareholders' meeting that happened on Tuesday, RIL secured 99.9 per cent of votes in favour of the demerger.

RIL had in October 2022 approved the demerger of the financial services arm.

RSIL will be renamed Jio Financial Services Ltd (JFSL) and RIL shareholders will receive one share of JFSL for each share they own.

KV Kamath will be the non-executive chairman of the demerged entity whose shares will be listed on both the BSE and the National Stock Exchange.

The company had earlier announced that the creation of an independent company would help in focusing exclusively and exploring opportunities in the financial services sector. The independent company can attract different sets of investors, strategic partners, lenders and other stakeholders having a specific interest in the financial services business. The demerger will unlock value for RIL's shareholders, it added.

In October last year, while announcing the demerger, RIL chief managing director (CMD) Mukesh Ambani had said, "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."

"JFS is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions," he said.

Ambani had added that JFS will leverage the nationwide omnichannel presence of RIL’s consumer businesses.