Billionaire businessman Mukesh Ambnai's daughter Isha Ambani has been appointed non-executive director on the board of demerged financial services unit of Reliance Industries Ltd, the company said on Saturday. Reliance had previously announced plans to demerge its financial services undertaking into Reliance Strategic Investments Limited (RSIL) and rename and list it as Jio Financial Services Limited (JFSL).
It will lend to consumers and merchants based on proprietary data analytics and will eventually branch out to insurance, payments, digital broking and asset management. Every Reliance shareholder will get one share of the new firm for every share held in the parent.
The board of directors of the new company at a meeting held on July 7 approved the appointment of new directors. Isha Mukesh Ambani was appointed as a non-executive director. Alongside, Reliance executive Anshuman Thakur too has been appointed as a non-executive director.
The company said that former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors.
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"Appointment of directors is subject to the approval of members of RSIL and the Reserve Bank of India and will be effective from the date of receipt of approval of the Reserve Bank of India," the filing said. Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for a period of three years.
While the effective date of the demerger has been fixed as July 1, July 20 has been fixed as the record day for allocating shares of the new company, according to the company's stock exchange filing.
The spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.
"In accordance with provisions of the (demerger) Scheme, Reliance Strategic Investments Limited (RSIL) shall issue and allot one fully paid-up equity share of RSIL having face value of Rs 10 each for every one fully paid-up equity share of Rs 10 each of the company to the shareholders of the company whose names are recorded in the register of members and/or records of the depository as on the record date," the firm said in a stock exchange filing.
(With inputs from PTI)
