Reliance Industries Ltd. on Thursday said the National Company Law Tribunal has given its nod to the demerger of the company's financial services undertaking and its listing.
Reliance had previously announced plans to demerge its financial services undertaking into Reliance Strategic Investments Ltd. and rename and list it as Jio Financial Services Ltd.
"We wish to inform you that the National Company Law Tribunal, Mumbai Bench (NCLT), vide its order dated June 28, 2023, has sanctioned the Scheme," it said in a stock exchange filing.
It went on to state that the company will now take necessary steps for the demerger.
"The company and Reliance Strategic Investments Limited will take necessary steps including fixing the record date for allotment and listing of equity shares of Reliance Strategic Investments Limited," it said without giving timelines for the same.
According to brokerage BofA Securities, by separating financial services from the core business, Reliance appears to be keeping arm's length transaction from other entities, and in theory helping them better to attract strategic or JV partners who are keen only in financial services arm - like what they did with Reliance Jio or tower InvIT.
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