Weeks after demerging the company’s financial services, Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani on Sunday said that his Jio Financial Services aims to provide “simple, affordable and innovative digital-first solutions”. Last month, Reliance demerged its financial services company Reliance Strategic Investments Ltd, and renamed it Jio Financial Services Limited (JFSL).
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“Jio Financial Services aims to provide simple, affordable, and innovative digital-first solutions,” said Ambani in RIL’s Integrated Annual Report 2022-23 released on Sunday. Today’s India is adopting digital finance at an unprecedented pace, he said, adding that the digital revolution has penetrated every corner of the nation through Jan Dhan accounts, digital payments, usage of smartphones, and low-cost data. “The growth opportunities presented by financial services are remarkable and provide strong directional support to the economy.”
“As various financial services are governed by different regulatory frameworks, we believe, an independent financial services entity will allow us to access the opportunities available in the Indian market,” Ambani said, adding that Jio Financial Services along with its subsidiaries will leverage the technological capabilities of Reliance and digitally deliver financial services, democratising access to financial services offerings for Indian citizens.
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Ambani further said that Jio Financial Services aims to provide simple and affordable solutions. He also added that JFSL is positioned uniquely to capture the growth opportunities in the financial services sector “and play a crucial role in transforming the landscape of digital finance in India”.
JFS has been valued at around $20 billion after its stock price was set at a much higher-than-expected Rs 261.85 in its demerger from RIL. The demerger, which was announced last October, is seen as Reliance’s way of expanding in the lucrative financial services sector, especially as it already has a non-bank financial company licence. At a $20 billion valuation, Jio Financial would be one of the top 40 Indian companies by market capitalisation, in a list headed by Reliance at $233 billion.
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JFS will be included in major Indian indices, including the benchmark Nifty 50, but will not trade until it is listed, the date for which Reliance will likely set at its upcoming Annual General Meeting (AGM).
RIL will hold its 46th annual general meeting later this month, on August 28, 2023.
