Reliance Industries (RIL) has completed the transfer of Rs 15,500 crore in cash and liquid investments to Jio Financial Services (JFSL). This transfer took place as part of the demerger scheme, which led to the formation of JFSL as a separate entity to manage RIL’s financial services businesses. With this transfer, JFSL now possesses a substantial liquid asset base of Rs 20,700 crore. Read More Business News on our website.
During a post-earnings media and analysts call, RIL’s CFO, Venkatachari Srikanth, explained that the cash and liquid investments were moved from RIL’s consolidated balance sheet to JFSL. Additionally, JFSL’s liquid asset base also includes cash equivalents from RIL’s associate company, Reliance Services and Holdings (RSHL), which is now a part of JFSL. This shift has also impacted RIL’s net-debt, reflecting the demerger of JFSL.
Before the demerger, RIL sought approval for the process in March, and after obtaining the necessary shareholders’ and regulatory approvals in May and July respectively, the demerger was successfully executed. Post-demerger, JFSL has become a financial services entity, holding investments in six companies, namely Reliance Industrial Investments and Holdings, Reliance Payment Solutions, Jio Payments Bank, Reliance Retail Finance, Jio Information Aggregator Services, and Reliance Retail Insurance Broking. As of the end of June quarter, RIL’s outstanding debt stood at Rs 3.19 trillion, representing a 21.29% increase from the debt recorded during the same period the previous year.