New Delhi: Reliance Industries has announced plans to spin off its financial services venture Reliance Strategic Investments Limited (RSIL) and rename it as Jio Financial Services Limited (JFSL). The demerger of Jio Financial Services Ltd has been approved by NCLT, and RIL has fixed July 20 as the record date.
Record date for Jio Financial demerger
In a BSE filing on July 8, RIL said, “It is informed that Thursday, July 20, 2023, will be the record date for the purpose of determining the equity shareholders of the company entitled to receive equity shares of Reliance Strategic Investments.” Ltd. in accordance with the Scheme of Arrangement between Reliance Industries Ltd. and its shareholders and creditors and Reliance Strategic Investments Ltd. and its shareholders and creditors.”
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RIL had kept the effective date of the scheme as July 1, 2023.
What will the shareholders/investors of Reliance get?
The company further said, “In accordance with the provisions of the scheme, Reliance Strategic Investments Limited (“RSIL”) will issue and allot 1 (one) fully paid-up equity share of RSIL of face value of Rs 10 (Rupees Ten) each. to the shareholders of the Company for each fully paid-up Equity Share of Rs.10 (Rupees Ten) each (“New Equity Shares of the Resulting Company”) whose names are recorded in the Register of Members and/or Depositories as on the Record Date Records of”.
Can you really get Jio Financial Services Limited (JFSL) for free?
As per the company’s announcement on the demerger of Jio Financial Services Limited, RIL has set the ratio for the demerger at 1:1. This means, for every share of RIL held before the record date, the company will issue 1 share of JFSL.
Jio Financial Services Limited (JFSL) Demerger: What is the significance of the record date
Record date can also be explained as a cut-off date or a deadline set by a business or company to identify which shareholders are eligible to receive a certain dividend or payment. Since RIL has fixed July 20 as the record date for Jio Financial Services Limited, today i.e. July 19 is the ex-record date. Therefore, anyone who bought RIL stock after July 19 will not get shares. In other words, July 19 is the X-record date, today is the last date to buy shares.
When will Jio Financial Services Limited be listed?
You can view your share status only after Jio Financial Services Limited is listed. The finance business of Reliance Strategic Investments will be listed separately and will be named JFSL upon listing. JFSL is expected to be listed in the next 2-3 months.
As per its announcement, the company will disclose Q1FY24 earnings on July 21. The stock has gained 7.9% in the last month. Reliance Industries will now hold 6.1 per cent stake in JFSL once RIL’s finance operations are shifted there, according to Axis Securities, reported news agency IANS.