Weeks after the demerger of the company’s financial services, it was announced by Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani on Sunday that “simple, affordable, and innovative digital-first solutions” are the objectives of his Jio Financial Services. Last month, Reliance demerged its financial services company Reliance Strategic Investments Ltd, and it was subsequently renamed Jio Financial Services Limited (JFSL).
As per RIL’s Integrated Annual Report 2022-23 released on Sunday, Ambani stated, “Jio Financial Services aims to provide simple, affordable, and innovative digital-first solutions.” He also highlighted that India today is adopting digital finance at an unprecedented pace, with the digital revolution penetrating every corner of the nation through Jan Dhan accounts, digital payments, smartphone usage, and low-cost data. Ambani further expressed that the growth opportunities presented by financial services are remarkable and provide strong directional support to the economy.
“It is believed by Ambani that as various financial services are governed by different regulatory frameworks, the creation of an independent financial services entity will allow access to the opportunities available in the Indian market,” stated Ambani. He further added that Jio Financial Services, along with its subsidiaries, will leverage the technological capabilities of Reliance and digitally deliver financial services, democratizing access to financial service offerings for Indian citizens.
Ambani also mentioned that the aim of Jio Financial Services is to provide simple and affordable solutions. He emphasized that JFSL is uniquely positioned 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’s valuation has been estimated at around $20 billion after its stock price was set at a much higher-than-expected Rs 261.85 during its demerger from RIL. The demerger, announced last October, is considered Reliance’s means of expanding in the lucrative financial services sector, particularly because it already possesses a non-bank financial company license. At a valuation of $20 billion, Jio Financial would rank among the top 40 Indian companies by market capitalization, with Reliance heading the list at $233 billion.
JFS will be incorporated into major Indian indices, including the benchmark Nifty 50, but trading will not commence until it is officially listed, the date of which is expected to be set during Reliance’s upcoming Annual General Meeting (AGM).
RIL’s 46th annual general meeting is scheduled to be held later this month, on August 28, 2023.