Reliance Industries Ltd's plans to demerge its financial services business and list the entity could create the fifth-largest financial services firm in India in terms of net worth, according to a report by Macquarie Capital Securities.
RIL announced on October 21 that it plans to demerge its financial services undertaking into Reliance Strategic Investments Ltd (RSIL) and rename it Jio Financial Services Ltd (JFSL), which will be listed on the stock exchanges.
RSIL is a wholly owned subsidiary of RIL and an RBI-registered non-deposit-taking systemically important non-banking financial company (NBFC).
"The investment of RIL in Reliance Industrial Investments and Holdings Ltd (RIIHL), which is a part of the financial services undertaking of RIL, will stand transferred to JFS. RIIHL is the ultimate beneficiary of 6.1 percent RIL shares through its interest in Petroleum Trust and Reliance Services and Holdings Ltd," the Macquarie report said.