In a groundbreaking move, billionaire Mukesh Ambani’s conglomerate, Reliance Industries Ltd. (RIL), is set to demerge its financial arm, Jio Financial Services (JFS), on July 20, 2023. This strategic decision comes after shareholders and creditors approved the spinoff of Reliance Strategic Investments Ltd (RSIL), which will be rebranded as Jio Financial Services. The demerger will see RIL’s shares unavailable for normal trading for the initial 45 minutes on the day of the event.
An Overview of the Demerger
The post-demerger cost of obtaining RIL shares has been set at 95.32 percent, with the remaining 4.68 percent accounting for RSIL shares. Shareholders are required to distribute their pre-demerger equity share acquisition cost accordingly, as stated in an official filing with the exchange. The process is aimed at benefiting shareholders, and the company has disclaimed any explicit or implicit liabilities associated with this guidance.
RIL-Jio Financial Services Demerger LIVE: NSE, BSE Initiate Special Pre-Open Session
Reliance Industries has initiated trading in a special session to ascertain the value of Jio Financial Services, its demerged financial services unit. RIL’s stock concluded at ₹2,841.85 on the previous Wednesday. NSE and BSE are currently holding a ‘pre-open call auction’ session for Reliance between 9:00 a.m. to 10:00 a.m. The record date for the Reliance-Jio Financial Services demerger is today, July 20, 2023, with the demerger ratio set at 1:1.
The demerger of RLC’s financial arm to create Jio Financial Services marks a significant milestone for Mukesh Ambani’s Reliance Industries Ltd. The move is expected to unlock new opportunities for both entities, benefitting shareholders and potentially making a lasting impact on India’s financial landscape.
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