Reliance Shareholders, Creditors Give Approval For Demerging Its Financial Services Arm

The shareholders, unsecured creditors, and secured creditors of Reliance Industries give their approval to demerge the company's Financial Services arm - Reliance Strategic Ventures. The joint decision was arrived at through e-voting.

The press statement filed by the company with the securities regulator stated that 100 per cent of the votes were in favour of the demerger.

With all approvals in place, the newly independent firm will be renamed Jio Financial Services. Ex-banker KV Kamath will be the non-executive chairman of this firm.

In October 2022, Reliance Industries had approved to separate the financial services entity but, was not getting approval from the shareholders and creditors.

Jio Financial Services will acquire the liquid asset shares of Reliance Strategic Ventures to bring adequate liquid capital required for the lending business and incubate other financial services verticals, including insurance, payments, e-broking and asset management for the next three years.

Once the demerger process is complete, the shares of Jio Financial Services will be listed on both the indexes, NSE and BSE. The shareholders of Reliance Industries will receive one share of Jio Financial Services for every share held of the parent company.

The combined revenue of Reliance financial services for the year 2022 was reported to be Rs 1,535.6 crore with an asset base of Rs 27,964 crore.

The stock price of Reliance Industries closed 1.16 per cent higher at Rs 2447.80 per share than the previous day's closing. The 52-week high is at Rs 2816.35 per share and the 52-week low is at Rs 2180 per share. Over the last one year the share price has fallen by nearly 7. 31 per cent while over three years it has rallied by 69.06 per cent.