Mukesh Ambani’s Reliance Industries (RIL) on Friday said that it would demerge its financial services arm and list it on the stock exchanges.  

In a statement, the company said that Reliance’s shareholders would be issued one equity share of Jio Financial Services (JFSL) for every share they hold in the company. 

JFSL planned to launch consumer and merchant lending business while continuing to evaluate organic growth, joint-venture partnerships as well as inorganic opportunities in insurance, asset management and digital broking segments, it said. 

“The Board of Directors of Reliance Industries (RIL), at its meeting held today (Friday), approved a Scheme of Arrangement amongst RIL, Reliance Strategic Investments (RSIL) and their respective shareholders and creditors in terms of which, RIL will demerge its financial services undertaking into RSIL (to be renamed Jio Financial Services or JFSL),” it said. 

JFSL would be listed on the Indian stock exchanges. 

RSIL is currently a wholly-owned subsidiary of RIL and an RBI-registered non-deposit-taking systemically important non-banking financial company. 

“Pursuant to the scheme, shareholders of RIL will receive one equity share of JFSL of face value Rs 10 for one fully paid-up equity share of Rs 10 held in RIL,” the statement said. 

The investment of RIL in Reliance Industrial Investments and Holdings (RIIHL), which is a part of the financial services undertaking of RIL, will stand transferred to JFSL. 

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