Reliance Industries is consolidating and splitting off financial arm. Ex-date set in 6 days (July 20). RIL shareholders will receive Jio Financial Services (JFSL) share for each RIL share they own.

JFSL will be publicly listed. I think Ambani studied GE story very closely...

GE w/ Welsh inertia wanted to do everything and mostly did. Appliances, industrial, energy and ultimately financing, insurance, asset mgmt. RIL could be an elephant in the room in India, but I think Ambani realized, esp. looking at $BABA Ant Financial, that gov may not let Indian financial stability hang in hands of few lenders (over time that is). From what I read, regulators were already sharpening their knifes.

What I like about Jio Financial Services demerger:

-JFSL will be 5th India's largest financier, will compete w/ Paytm, Bajaj Finance

-floated JFSL stock price <200 Rs (3-5x P/BV, some holding discount) - marginal hit to parent (even if)

Importantly:

-different sets of investors (understanding what is owned, higher multiple)