NCLT gives approval for Jio Financial Services demerger

10 Jul 2023 , 11:57 AM

Mukesh Ambani intends to list Jio Financial Services (JFSL) by September of this year after receiving approval from the NCLT to demerge the company’s financial services operation from Reliance Industries (RIL).

The transaction, which would create the fifth-largest lender in terms of capital and put it in direct competition with companies like Paytm and Bajaj Finance, will unleash value for its 36 lakh-strong shareholder base.

According to news reports, Market experts predict that Ambani will reveal the record date for the allocation and listing of JFSL, the new name for Reliance Strategic Investments, in July or August.

Ambani is anticipated to outline the JFSL strategy at the company’s annual general meeting (AGM), the date of which has not yet been disclosed.

RIL shares are in the spotlight before to the demerger and listing because shareholders of the parent business will receive one share of Jio Financial for each RIL share they own. In the past three months, the stock has already increased 13%.

JFSL’s entry will thereby heighten competition in the NBFC and fintech retail lending markets.

Reliance Industrial Investments and Holdings (RIIHL), Reliance Payment Solutions, Jio Payments Bank, Reliance Retail Finance, Jio Information Aggregator Services, and Reliance Retail Insurance Broking are the six businesses in which the financial services organization holds investments.

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