Reliance Industries’ shares were in focus on May 2 ahead of the meeting of secured creditors, unsecured creditors and shareholders to approve the proposed demerger of Reliance Strategic Ventures. Post the approval, the unit, which is the financial services subsidiary of the oil-to-telecom conglomerate, will be renamed Jio Financial Services.

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Shareholders of Reliance will receive one share of the demerged entity for every one share held in the company. Veteran Banker KV Kamath will be the non-executive chairman of the demerged entity.

Once the demerger gets a nod from the shareholders, Jio Financial Services shares will be listed on both on BSE and NSE with its share capital surging to Rs 15,005 crore from Rs 232.1 crore, while the paid-up share capital will go up to Rs 6,766 crore from Rs 2.33 crore.

Jio Financial Services will acquire liquid assets (including treasury shares) of Reliance Industries’ financial services arm to bring adequate regulatory capital for lending to consumers and merchants, and to incubate other financial services verticals, including insurance, payments, e-broking and asset management over the next three years.

The structure of Jio Financial will allow it to partner with strategic or financial investors, enhancing strategic focus and supporting its growth drivers.

In the 2022 fiscal, Reliance's financial services business reported a combined revenue of Rs 1,535.6 crore and had a combined asset base of Rs 27,964 crore.

Mukesh Ambani led conglomerate had approved the demerger of the financial services arm in October 2022.

RIL stock may also react to the cut in windfall tax on domestic crude oil production to Rs 4,100 per tonne from Rs 6,400 per tonne earlier.

At 10:10 am, Reliance shares were trading 0.68 percent higher at Rs 2,436.65 on BSE.

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First Published:May 2, 2023 9:09 AM IST