STOCK IN FOCUS- RELIANCE: Reliance Industries' stock price experienced a significant surge, with a remarkable 4.5% jump, propelling it to a 52-week high or One-Year-Highm of Rs 2,755 per share on the BSE intraday on July 10. This noteworthy upswing was triggered by the announcement made by Mukesh Ambani-led Reliance Industries, unveiling plans to demerge its financial services division into a separate entity named Reliance Strategic Investments Limited (RSIL). Additionally, the demerged entity will be rebranded and listed as Jio Financial Services Limited (JFSL).
Jio Financial Services will leverage proprietary data analytics to offer lending services to both consumers and merchants. Over time, it aims to expand its offerings into insurance, payments, digital broking, and asset management. The effective date for the demerger has been set for July 1, with July 20 designated as the record day for the allocation of shares in the new company, as stated in the company's filing with the stock exchange.
This strategic spinoff will establish the fifth-largest player in the financial industry in terms of capital, directly competing with renowned names such as Paytm and Bajaj Finance. It will perfectly complement Reliance's existing consumer businesses, which encompass India's largest wireless operator boasting a staggering 428 million users, as well as a prominent retail chain comprising over 17,000 stores, according to reports.
The firm, in compliance with the provisions of the demerger scheme, shared in a filing with the stock exchange, "Reliance Strategic Investments Limited (RSIL) shall issue and allot one fully paid-up equity share of RSIL, having a face value of Rs 10 each, for every fully paid-up equity share of Rs 10 each held by the shareholders of the company, whose names are duly recorded in the register of members and/or records of the depository as of the specified record date."
In a meeting held on July 7, the board of directors of the newly formed company approved the appointment of new directors. Isha Mukesh Ambani, the elder daughter of the billionaire, has been named as a non-executive director. Joining her is Reliance executive Anshuman Thakur, who has also been appointed as a non-executive director.
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