Mukesh Ambani-led Reliance Industries Ltd. (RIL) is all set to go ahead with the demerger of its financial services business. According to official updates, RIL has called a meeting of its creditors and shareholders on May 2, 2023 to consider and approve the proposed scheme of arrangement between Reliance Industries Limited and Reliance Strategic Investments (RSIL).
The regulatory filing reads, “This is to inform that by an order dated March 27, 2023 (“Tribunal Order”), the Mumbai Bench of the Hon’ble National Company Law Tribunal (“Tribunal”) has directed meetings to be held of the Secured Creditors, Unsecured Creditors and Equity Shareholders of the Company.”
As per a regulatory filing, three types of meetings have been scheduled by Reliance Industries Limited. While all the meetings are scheduled for May 2, the timings are different for different parties. For instance, the meeting of secured creditors is at 10:45 am, unsecured creditors at 11:45 am, and equity shareholders at 2 pm.
After this meeting, if the demerger is approved, the name of the Reliance Strategic Investments will be changed to Jio Financial Services Limited. It must be noted that the development related to the demerger is not new as last year, Ambani-led RIL had announced the demerger and subsequent listing on the stock exchanges.
Last updates on the method of demerger also suggested that the process will be done through a share-swap arrangement. This means that the shareholders of Reliance Industries will get one share of Jio Financial Services for every share held by them.
In addition this, industry veteran KV Kamath would be the non-executive chairman of the new company.