Reliance Industries Ltd has fixed Jul 20 as the record date for allotment of shares of its financial services arm Reliance Strategic Investments Ltd, the conglomerate said today in an exchange filing.
Reliance had previously announced plans to demerge its financial services undertaking into Reliance Strategic Investments Limited (RSIL) and rename and list it as Jio Financial Services Limited (JFSL). The National Company Law Tribunal earlier this month approved the proposed demerger of Reliance Strategic Investments. Following this, the demerger is effective from July 1, said the company on Thursday.
Jio Financial Services will lend to consumers and merchants based on proprietary data analytics and will eventually branch out to insurance, payments, digital broking and asset management.
"In accordance with provisions of the Scheme, Reliance Strategic Investments Limited 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 ('Resulting Company New Equity Shares') 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," RIL said in the filing.
Managing Director and Non-Executive Directors of Jio Financial Services
Further, Hitesh Kumar Sethia will be the managing director and chief executive officer of Reliance Strategic Investments for a period of three years. "Hitesh Sethia is a financial services executive with over two decades of experience across Europe, Asia (India & Greater China) and North America. He has spent most of his career at ICICI Bank gaining functional experience and handling leadership roles across various departments such as credit, retail banking, corporate banking and transaction banking coupled with understanding of technology applications in financial services," the filing said giving a brief profile of the new CEO.
Billionaire Mukesh Ambnai's daughter Isha will be appointed as the non-executive director of the financial services arm of Reliance Industries, the company said on Saturday. Alongside, Reliance executive Anshuman Thakur too has been appointed as non-executive director.
It said former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors. All the appointments are subject to approval of the Reserve Bank of India.
The demerger proposal received a nod from shareholders and creditors in May.
This spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.
Reliance Industries shares
On Friday, the shares of Reliance Industries closed 0.2 per cent lower at Rs 2,633.60.
With inputs from Agencies.
