Mumbai: Reliance Industries Ltd on Friday announced the appointment of Isha Ambani, daughter of Mukesh Ambani, and Rajiv Mehrishi, former CAG, as directors on the board of the demerged financial services unit.
The company also fixed July 20 as the record date for the purpose of determining the equity shareholders who are entitled to receive shares of Reliance Strategic Investments.
Reliance Industries Ltd had earlier announced its intention to demerge its financial services division and establish it as a distinct entity named Reliance Strategic Investments Limited (RSIL). Following the demerger, the company plans to rename and list the newly formed entity as Jio Financial Services Limited (JFSL).
Jio Financial Services Limited (JFSL) aims to provide lending services to consumers and merchants using proprietary data analytics. JFSL also plans to expand its offerings to include insurance, payments, digital broking, and asset management.
As part of the demerger, each Reliance shareholder will receive one share of the new company for every share they hold in the parent company. According to the company’s stock exchange filing, while the effective date of the demerger has been fixed as July 1, July 20 has been fixed as the record day for allocating shares of the new company.
“In accordance with provisions of the (demerger) Scheme, Reliance Strategic Investments Limited (RSIL) shall issue and allot one fully paid-up equity share of RSIL having face value of Rs 10 each for every one fully paid-up equity share of Rs 10 each of the company to the shareholders of the company whose names are recorded in the register of members and/or records of the depository as on the record date,” the firm said in a stock exchange filing.
As per a PTI report, the demerged company will be the fifth-largest financial services provider in terms of capital. This move positions it to directly compete with industry leaders such as Paytm and Bajaj Finance. The spinoff will complement Reliance’s existing consumer businesses, which include India’s largest wireless operator serving approximately 428 million users and a prominent retail chain boasting over 17,000 stores, the report said.
As per the RIL’s exchange filing, during the board meeting held on July 7, the newly formed company approved the appointment of directors. Isha Mukesh Ambani, the elder daughter of the RIL Chief Mukesh Ambani, has been appointed as a non-executive director.
Additionally, Anshuman Thakur, an executive at Reliance, has also been appointed as a non-executive director. The board has appointed former bureaucrat Rajiv Mehrishi, who previously served as home secretary and CAG, as an independent director for a term of five years.
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