Reliance Industries (RIL) has transferred Rs 15,500 crore of cash and liquid investments to Jio Financial Services (JFSL), the new firm formed following the demerger of Reliance Industries’ (RIL) financial services businesses. Following the transfer, JFSL has a liquid asset base of Rs 20,700 crore.
The cash and liquid investments were transferred from RIL’s consolidated balance sheet as part of the demerger scheme to JFSL, RIL CFO Venkatachari Srikanth said in a post-earnings media and analysts call on Friday. “So now, JFSL will have a total liquid asset base of Rs 20,700 crore including cash equivalents in RIL associate Reliance Services and Holdings (RSHL), which is now a part of JFSL,” he said, adding, RIL’s net-debt now reflects the demerger of JFSL.
As of end of June quarter, RIL had an outstanding debt of Rs 3.19 trillion, a 21.29% rise from Rs 2.63 trillion recorded during the year-ago quarter. Earlier on March 30, Mukesh Ambani-led RIL had initiated the process to demerge its financial services business into Reliance Strategic Investments (RSIL) and rechristen it as JFSL.
In May, it received shareholders’ approval for the process and later in July, it got National Company Law Tribunal’s approval for the demerger.
Following the demerger, JFSL would be a financial services undertaking with investments in six companies — Reliance Industrial Investments and Holdings, Reliance Payment Solutions, Jio Payments Bank, Reliance Retail Finance, Jio Information Aggregator Services and Reliance Retail Insurance Broking.