Reliance share price was up over 3% on Friday as the company announced a meeting of the secured creditors, unsecured creditors, and shareholders on May 2 to approve the proposed demerger of Reliance Strategic Ventures.

What Happened: The company which is the financial arm of the global conglomerate is said to be renamed Jio Financial Services after the demerger. As per the oil-to-telecom giant, the demerger will lead to the creation of a new entity that will be solely focused on the financial services sector.

“The independent company can attract different sets of investors, strategic partners, lenders, and other stakeholders having a specific interest in the financial services business,” the company said in a regulatory filing. Rumors have been rife about the conglomerate’s entry into the financial sector for quite some time now. Last week, media reports suggested that the company had begun hiring resources for the new venture.

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Why It Matters: Global analyst firm Nomura took note of the meeting notification and released a note today maintaining its ‘buy’ rating on the stock with a target price of ₹2,850. The company said that the current move shows a progression toward the eventual listing of Jio Financial Services, and it expects the listing to happen in the coming months. The firm expects the company to lay down a roadmap for growth in the financial sector in its next annual general meeting.

Global financial services firm Macquarie sees Jio Financial Services to be valued at over ₹1.52 lakh crore, which will make it the fifth largest financial services company in the country. It also upgraded the stock’s rating from ‘underperform’ to ‘neutral’ in its latest research note.

Price Action: Reliance share price was up 3.61% to trade at ₹2,316 in the afternoon hours of trading on Friday.

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