Mumbai, India – In a significant announcement, Reliance Industries Ltd. has said that it plans to soon list shares of Jio Financial Services. This move is part of the conglomerate’s grand strategy to make its newly created unit the biggest non-banking lender in India, using the strength of its digital and retail sectors.
Mukesh Ambani, the billionaire chairman of Reliance Industries, shared his vision in the company’s annual report for the financial year ending March 31. He believes that the fresh initiative will unlock value for shareholders and provide them with a new platform for growth.
Following the path of his late father, Dhirajlal Hirachand Ambani, Mukesh Ambani has a history of unveiling big projects at the annual investors’ gatherings. Previously, he has delighted shareholders with free shares and launched affordable smartphones.
This year, there’s a lot of anticipation about Ambani’s plans for Jio Financial Services, alongside his clean energy and digital ventures. Reliance Strategic Industries Ltd., to be renamed Jio Financial, is valued at approximately $20 billion after its shares were spun off last month.
Even though the newly formed firm has minimal revenue at the moment, it already owns a 6.1 percent stake in Reliance Industries. Plus, a partnership with BlackRock has been announced to establish an Indian asset management venture.
According to Ambani, Asia’s richest man, “Jio Financial Services aims to provide simple, affordable, and innovative digital-first solutions.” This falls in line with his knack for transforming businesses, leading Reliance to shift from traditional crude oil refining and petrochemicals to a consumer services giant over the past decade.
Furthermore, the company is striving to make Jio Financial Services one of India’s leading non-banking finance firms. This move aligns with its desire to build an empire that rivals global giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd.
In conclusion, the upcoming listing of Jio Financial Services seems to herald a new era in digital finance for India. By leveraging existing digital and retail strengths, Reliance Industries appears poised to make waves in the non-banking finance sector. Time will tell if Ambani’s latest vision will translate into another success story.
This news is based on a cnbctv18.com article.