Mumbai, Jan. 2
SHAREHOLDERS of Reliance Capital Ventures (RCVL) will get five shares of Reliance Capital Ltd (RCL) for every 100 shares of RCVL, both the shares being of face value of Rs 10 each.
The process of demerger of the Reliance Group into entities that will be separately led by the Ambani brothers got off to a start today with the board of directors of Reliance Capital Ltd approving the merger of RCVL with RCL. The share exchange ratio is based on the number of shares of the company held by RCVL and is as recommended by KPMG, an RCL statement said.
RCVL holds 29 per cent equity stake in RCL. The shares of the company held by RCVL will be cancelled under the proposed scheme of amalgamation.
The fully diluted equity capital of the RCL will remain at approximately Rs 245 crore.
This decision is also subject to approvals from the board of RCVL, the shareholders of RCL and RCVL, and the High Courts in Mumbai and Gujarat.
On Tuesday, the board of directors of Reliance Energy is scheduled to meet to consider a proposal for the merger of Reliance Energy Ventures Ltd (REVL) with REL.
The demerger from the Reliance groupof the companies that will be in the Anil Dhirubhai Ambani (ADA) Enterprises fold will lead to the formation of four "resultant companies", which will apply to the SEBI for approval to list on the stock exchanges without making an IPO, a statement from ADA Enterprises last week said. The company whose listing is most keenly awaited is that of Reliance Communications Ventures Ltd, the holding company of Reliance Infocomm Ltd.
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