Reliance Industries Sets Record Date for Equity Shares Allotment and Listing

Reliance Industries (RIL), backed by billionaire Mukesh Ambani, made a significant  announcement on Saturday regarding the record date for the allotment of equity shares as part of the demerger plan for its financial services business into Reliance Strategic Investments (RSIL). In accordance with the plan, RSIL will undergo a name change to Jio Financial Services (JFSL) and will subsequently be listed for trading on various stock exchanges. Additionally, RSIL revealed that Hitesh Kumar Sethi has been appointed as the Managing Director and Chief Executive Officer of the newly-formed entity.

Reliance Industries Limited (RIL) stated in its regulatory filing that the effective date of the demerger scheme is July 1, 2023. This signifies the official commencement of the demerger process for RIL’s financial services business into Reliance Strategic Investments (RSIL), which will subsequently be renamed Jio Financial Services (JFSL). The effective date marks the point from which the demerger plan will be implemented and operational activities related to the scheme will come into effect. This announcement underscores RIL’s commitment to executing the demerger in a timely manner and paves the way for the subsequent listing and trading of JFSL on stock exchanges.

RIL has set July 20, 2023, as the record date for determining the eligible equity shareholders of RIL who will receive the allotment of fully paid-up equity shares of Reliance Strategic Investments Limited (RSlL). Under the allocation scheme, for every one fully paid-up equity share of ₹10 each held in RIL, eligible shareholders will be entitled to receive one fully paid-up equity share of RSlL, also with a face value of ₹10 each. This allocation mechanism ensures that eligible shareholders of RIL are proportionately granted the opportunity to participate in the ownership of RSlL. The fixed record date of July 20, 2023, is crucial for determining the entitlement of shareholders to the equity shares of RSlL in accordance with the demerger plan and regulatory guidelines.

RIL has issued a request to shareholders who hold equity shares in physical form to provide necessary details to the Registrar and Transfer Agent of the company, Kfin Technologies (KfinTech). Shareholders are advised to send a letter to KfinTech, either through email, post, speed post, courier, or hand delivery, containing the following information: name, address, email ID, PAN (Permanent Account Number), contact number, and details of their Demat account. This information should reach KfinTech no later than five working days prior to the record date, specifically on or before Friday, July 14, 2023. The purpose of providing these details is to enable RSIL to issue the resulting company’s new equity shares in dematerialized form. Shareholders are encouraged to comply with this request to ensure a smooth and efficient transition of their shares into the dematerialized format.

In addition to the aforementioned details, RSIL made an announcement on Saturday regarding the appointment of Hitesh Kumar Sethia as the Managing Director and Chief Executive Officer of Reliance Strategic Investments Limited (RSlL). The board of directors of RSIL has approved Sethia’s appointment for a tenure of three years. It is important to note that this appointment is subject to the necessary approvals, including the approval of the company’s members, the Reserve Bank of India (RBI), and any other required regulatory approvals. These approvals are essential to finalize the appointment of Sethia as the MD and CEO of RSIL, and the company will comply with all relevant procedures and regulations to ensure the appointment is formally confirmed.

According to the recent announcement, Hitesh Kumar Sethia has been designated as the President and Chief Executive Officer of Reliance Strategic Investments Limited (RSlL).

Furthermore, the board of directors of Reliance Strategic Investments Limited (RSIL) has granted approval for the appointment of Rajiv Mehrishi, Sunil Mehta, and Bimal Manu Tanna as additional directors. Their appointment has been sanctioned for a period of five years, specifically until July 6, 2028.

The board of directors of Reliance Strategic Investments Limited (RSIL) has recommended the appointment of Isha Ambani, the daughter of Mukesh Ambani, and Anshuman Thakur as non-executive directors.

Reliance Strategic Investments Limited (RSIL) has appointed Lodha & Co, Chartered Accountants as the Joint Statutory Auditor. The firm will hold this position from the conclusion of the 25th annual general meeting of RSIL until the conclusion of the 28th annual general meeting.

Bafasubrrnanian Chandrasekaran has taken the decision to step down from his position as an independent director on the board of directors of the company. His resignation will be effective from July 7, 2023.

As part of the demerger scheme, Jio Financial Services Limited (JFSL) will strategically acquire liquid assets to establish a robust regulatory capital base. This capital will enable JFSL to facilitate lending activities targeting consumers, merchants, and other relevant entities. The acquisition of liquid assets is a strategic move aimed at ensuring JFSL’s ability to meet regulatory requirements and provide adequate financial resources for its lending operations.

Jio Financial Services Limited (JFSL) and its subsidiaries, collectively referred to as JFS, will leverage the technological capabilities of Reliance Industries Limited (RIL). This strategic approach aims to enhance the digital delivery of financial products and services, with the overarching goal of democratizing access to financial services for the vast population of 1.4 billion Indians.

Jio Financial Services Limited (JFSL) has outlined its plans to establish a consumer and merchant lending business that leverages proprietary data analytics. This strategic move aims to complement and supplement the traditional credit bureau-based underwriting practices. By utilizing advanced data analytics, JFSL intends to enhance its ability to assess creditworthiness and offer tailored lending solutions to consumers and merchants. This approach reflects JFSL’s commitment to leveraging technology and data-driven insights to make informed lending decisions and provide efficient financial services.

On Friday, the closing share price of Reliance Industries Limited (RIL) on the Bombay Stock Exchange (BSE) was ₹2635.45 per share. This figure represents a marginal decrease compared to the previous closing price. The slight decline in RIL’s share price indicates a relatively stable or subdued trading session for the company’s stock on that particular day.