Reliance Retail opts for reduction of share capital, payout at Rs 1,362/ share
Billionaire Mukesh Ambani-led Reliance Industries (RIL) announced that its board has approved a proposal to reduce the equity share capital of its subsidiary Reliance Retail to the extent held by shareholders other than its promoter and holding company.
“The Board of Directors of the Company at its meeting held on July 4, 2023, approved a proposal to reduce the equity share capital to the extent held by shareholders other than its Promoter and holding company, namely, Reliance Retail Ventures Limited,” RIL said in a regulatory filing.
Upon such reduction, these shares held by such shareholders shall stand canceled and extinguished and a consideration of Rs 1,362 per share shall be paid to shareholders towards the capital reduction. The payout, RIL said, has been determined on the basis of valuation obtained from two reputed independent registered valuers.
RIL’s move will affect those invested in Reliance Retail stock in the unlisted market where the stock was being traded at around Rs 2,700 or half of the payout price. Reliance Retail Ltd is a step-down subsidiary of RIL. RIL holds 85.06% of the subscribed equity shares of Reliance Retail Ventures Ltd (RRVL) which in turn holds 99.93% of the subscribed equity shares of Reliance Retail Ltd ( RRL) Since its inception in 2006, Reliance Retail (including RRVL) has grown into India’s largest retail conglomerate.
