Billionaire Mukesh Ambani-backed Reliance Industries (RIL) on Saturday announced the record date for allotment of equity shares in the demerger plan of its financial services business in Reliance Strategic Investments (RSIL). Under the deal, RSIL will be renamed as Jio Financial Services (JFSL) which will be listed for trading on stock exchanges. RSIL also announced that Hitesh Kumar Sethi will head the new entity as MD and CEO.
In its regulatory filing, RIL said that the effective date of the scheme is July 1, 2023.
While the record date has been fixed as July 20, 2023, for the purpose of determining the equity shareholders of RIL who are entitled to receive 1 fully paid-up equity share of RSlL having a face value of ₹10 each for every 1 fully paid-up equity share of ₹10 each of RIL.
It said that the shareholders of the company holding equity shares in physical form are requested to send a letter to the Registrar and Transfer Agent of the Company (, Kfin Technologies) (“KfinTech") containing details like name, address, email ID, PAN, contact number, and details of Demat account among others through email, post, speed post, courier, or hand delivery to reach to the KfinTech no later than five working days before the Record Date (i.e., on or before Friday, July 14, 2023) to enable RSIL to issue the Resulting Company New Equity Share(s) in dematerialised form.
Further, RSIL also announced on Saturday that the board of directors has approved the appointment of Hitesh Kumar Sethia as the Managing Director and Chief Executive Officer of RSlL for a period of 3 years. It needs to be noted that this is subject to the approval of members of the company, RBI, and other approvals that are required.
Sethia has been designated as President and Chief Executive Officer of RSlL to hold such office till the effective date of his appointment as director, it said.
Also, the RSIL board approved the appointment of Rajiv Mehrishi, Sunil Mehta, and Bimal Manu Tanna as additional directors for a term of five years, up to July 6, 2028.
They have recommended appointing Mukesh Ambani's daughter Isha Ambani and Anshuman Thakur as non-executive directors.
Lodha & Co, Chartered Accountants will be the Joint Statutory Auditor of RSlL to hold office as such from the conclusion of the 25th annual general meeting till the conclusion of the 28th annual general meeting of RSIL.
Lastly, Bafasubrrnanian Chandrasekaran has stepped down as the independent director from the board of directors of the company with effect from July 7, 2023.
Additionally, in the scheme, JFSL will acquire liquid assets to provide adequate regulatory capital for lending to consumers, merchants, etc., and incubate other financial services verticals such as insurance, payments, digital broking, and asset management for at least the next 3 years of business operations.
JFSL and its subsidiaries (“JFS") will leverage the technology capability of Reliance and focus on the digital delivery of financial products to democratize financial services access for 1.4 billion Indians.
Further, JFS plans to launch a consumer and merchant lending business based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting. JFS will continue to evaluate organic growth, joint-venture partnerships as well as inorganic opportunities in insurance, asset management, and digital broking segments.
On Friday, RIL's share price closed at ₹2635.45 apiece, marginally down on BSE compared to the previous closing print.
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Updated: 08 Jul 2023, 03:55 PM IST
RIL fixes July 20 as record date for equity shares allotment, listing of Reliance Strategic Investments | Mint - Mint
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