Come July 20th, Jio Financial Services – a subsidiary of Reliance Industries Ltd – is poised to join multiple FTSE indices. As for when it will officially begin trading remains undisclosed; consequently, its estimated price remains static until then. Of significance is RIL’s successful demerger of its financial services division – with shareholders set to receive shares from this newly separated entity. Additionally noteworthy are recent board appointments: Hitesh Kumar Sethi being made CEO and notable figures Rajiv Mehrishi and Sunil Mehta joining.
In a surprising turn of events, Jio Financial Services, the subsidiary of Reliance Industries Ltd, which happens to be India’s largest company, is set to join various FTSE indices on July 20, as stated in an announcement from FTSE Russel.
Jio Financial Services is slated to become a part of three indices. it will be included in the FTSE All World Comprehensive Factor Index, FTSE Emerging Comprehensive Factor Index, and FTSE All-World ex CW Balanced Factor Index.
The precise date of Jio Financial Services’ listing remains a mystery, and until then, it shall dwell within the index at a steadfast estimated price. Should the trading day continue to elude even after a 20 business days, FTSE Russell, in accordance with its Spin-offs policy, shall reevaluate the company’s situation.
Recently, the National Company Law Tribunal has given the green light to the demerger of RIL’s financial services undertaking and its subsequent listing. And July 20 has been officially ordained as the day of reckoning, where the shareholders will be determined, qualifying them to receive shares from the demerged entity.
Under this scheme of arrangement, Reliance Strategic Investments shall bestow upon each RIL shareholder one fully paid-up equity share, with a face value of Rs 10, for every share held as of the illustrious record date. RSIL shall be all-new Jio Financial Services (JFSL).
Hitesh Kumar Sethi has been anointed as the managing director and chief executive officer of the new entity but his appointment awaits approval of the Reserve Bank of India.
Rajiv Mehrishi, former home secretary and the 13th Comptroller and Auditor General of India, shall grace the board of RSIL as an additional director along with Sunil Mehta, the former MD and CEO of Punjab National Bank; Isha Ambani and Anshuman Thakur, who shall take on the role of non-executive directors.
