Reliance to list Jio Financial Services on bourses on Aug 21

Jio Financial Services, the demerged entity of billionaire Mukesh Ambani-led Reliance Industries (RIL), is set to be listed on domestic stock exchanges on August 21. The listing will take place a day before it would be removed from FTSE Russell, a subsidiary of the London Stock Exchange Group. Jio Financial Services Ltd (JFSL) will be removed from the FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index and FTSE Emerging Index with effect from August 22.

“Trading members of the exchange are hereby informed that effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the exchange in the list of T group of securities,” JFSL says in a BSE filing today.

The demerger of Reliance Strategic Investments Limited (RSIL) from Reliance Industries took place on July 20, and the spun-off entity, JFSL was temporarily listed as the 51st stock on Nifty 50. JFSL also joined 18 other NSE indices such Nifty 100, Nifty 200, Nifty 500, Nifty Energy, and Nifty Oil & Gas.

The swap ratio for the demerger was fixed at 1:1, which means for every share of RIL held before the record date, the company will award 1 share of JFSL. With RIL’s financial business moving to JFSL, it will own a 6.1% stake in Reliance Industries.

For the quarter ended June 30, 2023, RSIL recorded net profit after tax at ₹145.7 crore against a loss of ₹1.84 crore in the year-ago period. The company posted a profit of ₹31.25 crore in March 2023 quarter. The total income from operations stood at ₹214.57 crore in June quarter compared with ₹44.84 crore in the March 2023 quarter and loss of ₹14.03 crore in the corresponding period last year.

Hitesh Kumar Sethi has been appointed as managing director and chief executive officer of the new entity for a period of three years, subject to the Reserve Bank of India’s approval. Isha Mukesh Ambani and Reliance executive Anshuman Thakur have been appointed as non-executive directors.

Besides, former Union Home Secretary Rajiv Mehrishi, former MD and CEO of Punjab National Bank Sunil Mehta, and Bimal Manu Tanna, a chartered accountant who worked with PwC, have been appointed as independent directors on the board of JFSL.

Reliance has been building a vibrant financial services platform to create value for every stakeholder. JFSL is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions. It will be a technology-led business, delivering financial products digitally by leveraging the nationwide omnichannel presence of Reliance’s consumer businesses, as per the company.

JFSL plans to acquire liquid assets to provide adequate regulatory capital for lending to consumers and merchants. Besides, it will incubate other financial services verticals such as insurance, payments, digital broking, and asset management for at least the next three years of business operations.