Reliance gains over 3% ahead of key meeting on May 2. Know details

By India Today Business DeskReliance Industries Limited (RIL) gained over 3 per cent during Friday’s intraday trading session, emerging as the top gainer on the benchmark indices. At around 12:15 pm, shares of RIL were up 3.71 per cent to Rs 2,317.70 apiece.

The rally in RIL stocks comes just a few days before a crucial meeting involving creditors and shareholders. The May 2 meeting would be held to consider and approve the proposed demerger of its financial services business, Reliance Strategic Ventures (RSV), from the main unit.

Following the demerger, the name of RSV would be changed to Jio Financial Services.

RIL chief Mukesh Ambani had announced plans for the demerger of the financial services business last year, saying it would lead to the creation of a new entity that would be listed on the stock exchanges.

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The demerger, if approved, will be executed through a share-swap agreement. It may be noted that shareholders of RIL will get one share of Jio Financial Services for every share held by them.

As of March 31, 2022, the turnover of Reliance’s financial services business stood at Rs 1,387 crore.

Reliance said the demerger and creation of a separate financial services vertical are important for better growth and expansion. “Further growth and expansion of the Financial Services Business would require a differentiated strategy aligned to its industry specific risks, market dynamics and growth trajectory,” Reliance said.

“The nature and competition involved in the financial services business is distinct from the other businesses and it is capable of attracting a different set of investors, strategic partners, lenders and other stakeholders,” the company added.

Multiple brokerages said Reliance’s move will create a strong roadmap for growth in the financial services sector.