The name of Reliance Strategic Investments, a wholly-owned subsidiary of Mukesh Ambani-led Reliance Industries, has been changed to Jio Financial Services Limited with effect from July 25, according to a regulatory filing by the company. The development comes days after the demerger of Reliance Strategic Investments from the parent company on July 20. Post demerger, Jio Financial Services (JFSL), a non-banking financial company, has been temporarily added as a 51st constituent in Nifty50 and 31st constituent in Sensex. It will be removed from all the indices three days after JFSL listing on the stock exchanges.
"This is to inform that in terms of clause 20 of the Scheme sanctioned by the Hon’ble National Company Law Tribunal, Mumbai bench, vide its order dated June 28, 2023 and pursuant to the certificate of incorporation issued by the Registrar of Companies, Mumbai dated July 25, 2023 the name of the Company stands changed from Reliance Strategic Investments Limited to "Jio Financial Services Limited" effective July 25, 2023," the company says.
As part of the scheme, shareholders of Reliance Industries will receive one equity share of the Jio Financial Services Limited of face value ₹10 for one fully paid-up equity share of ₹10 held in Reliance Industries. The board has approved the entitlement ratio based on the recommendations of the independent value and merchant bankers, the company says. Hitesh Kumar Sethi has been appointed as the managing director and chief executive officer of Jio Financial Services for a period of three years. Isha Mukesh Ambani and Reliance executive Anshuman Thakur have been appointed as the non-executive directors at the new entity for five consecutive years up to July 6, 2028.
Meanwhile, the oil-to-telecom conglomerate's investment in Reliance Industrial Investments and Holdings Limited (RIIHL), which is a part of the financial services undertaking of RIL, has been transferred to Jio Financial Services Limited. The financial services platform now comprises Reliance Retail Finance, Reliance Payment Solutions, Jio Information Aggregator Services, Reliance Retail Insurance Broking, Reliance Strategic Investments, Jio Payments Bank, and Reliance Industrial Investments and Holdings, the investment unit of the company.
"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 will be a technology-led business, delivering financial products digitally by leveraging the nationwide omnichannel presence of Reliance’s consumer businesses," said Mukesh Ambani earlier.
As part of the demerger, Jio Financial Services plans to acquire liquid assets to provide adequate regulatory capital for lending to consumers and merchants. The financial services arm will also incubate other financial services verticals such as insurance, payments, digital broking, and asset management for at least the next three years of business operations.
Shares of Reliance Industries closed 1.84% higher at ₹2,525.70 on Wednesday. The scrip opened at ₹2,480 as against the closing price of the previous session at ₹2,480.10. During the session, the company’s market capitalisation stood at more than ₹17.08 lakh crore, as more than 1.32 lakh shares exchanged hands on the BSE, as against the two-week average of 4.41 lakh shares.
