Winning Bizness Desk
Mumbai. Reliance Industries is preparing to bring the IPO of Jio Financial Services Limited by the end of October and according to Business Insiders, the business group is also in talks with Indian regulators to get necessary approvals for the listing of Jio Financial Services. It is expected that Mukesh Ambani's Reliance Industries Limited can soon list its digital finance unit in the stock market. All shareholders of Reliance Industries will receive one share for every share held at the time of listing on the stock market of Jio Financial. However, this time Reliance Industries has not officially given any information about it yet. Reliance Industries Limited had appointed KV Kamat as the non-executive chairman of Jio Financial Services in November last year. If media reports are to be believed, Hitesh Sethia, one of the top executives of McLaren Strategic Ventures, may join Jio Financial Services Limited as CEO in the next few months. Remember that last year Mukesh Ambani had announced to make Jio Financial Services a separate unit. He announced that Jio Financial Limited will be a technology-based business, which will offer financial products digitally by taking advantage of the availability of Reliance Industries across the country.
Plan to start consumer and merchant lending business
Jio Financial Services plans to start consumer and merchant lending business. Reliance's financial services business includes Reliance Industrial Investments and Holdings Limited, Reliance Payment Solutions Limited; Jio Payments Bank Limited; Reliance Retail Finance Limited; Geo Information Aggregator Services Limited; and is an investment in Reliance Retail Insurance Broking Limited. Global financial services giant Macquarie in its report last year termed Reliance's financial services business as a major threat to Paytm and other fintech companies in terms of market growth. Jio Financial Services will stand out from most fintechs because it has access to massive amounts of data. Jio can process and analyze this data in real time to offer financial services like Alibaba, Amazon, Apple.
Jio can become the fifth largest financial services company
After becoming a separate entity, Jio Financial Services could become the fifth largest financial services company with a net worth of around Rs 1 trillion. Reliance Industries already has an NBFC license, which can be leveraged for consumer or merchant lending. According to the information received, Jio Financial Services can also offer attractive rate off in merchant lending and digital unsecured lending markets. Reliance Industries Limited (RIL) announced the results of Q4FY23 i.e. the fourth quarter (January-March) on 21 April. The company's year-on-year (YoY) net profit in Q4 grew by 19.10% to Rs 19,299 crore. This is the company's highest ever quarterly net profit. At the same time, the net profit of Reliance Group's telecom company Jio (JIO) increased by 13% on an annual (YoY) basis to Rs 4,716 crore.
