5 March 2024

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Reliance Industries

The separation of Jio Finance from Reliance Industries is scheduled: Details Here

The management of Reliance Industries has formally determined that July 20, 2023 would serve as the formal date for the demerger of its financial sector after initially announcing its intention to enter the financial services industry earlier this year.

Reliance Industries

A fully owned subsidiary of Reliance Strategic Investments Limited (RSIL; the to-be-demerged corporation) is Reliance Industry. It will change its name to Jio Financial Services (JFS) following its demerger. This is the Mukesh Ambani-led Reliance Industries’ first significant demerger in a very long time.

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Information about the demerger

For each share of Reliance Industries they own, shareholders will be entitled to one share of JFS.

The share price of Reliance Industries has increased after the record date was revealed. On July 10, 2023, the business, which was already the most valuable in India recorded a market capitalization of more than Rs 18.5 lakh crore.

The purpose of the demerger Reliance Industries

Over the years, the financial services sector in India has expanded astronomically. Furthermore, there is tremendous room for expansion. Through this demerger, hopes to capitalise on this expansion and position itself as one of the largest NBFCs in India. 

The advanced technological skills and sizable financial reserves will be extremely advantageous to JFSL. After the demerger, JFSL intends to buy liquid assets to satisfy the necessary regulatory criteria to launch its lending operation. It will primarily concentrate on the MSME and retail loan market sector. It also has aspirations to launch other financial services sectors, including asset management, digital payments, insurance, and brokerage.