The board of directors of Reliance Energy Ltd (REL) has approved the amalgamation of Reliance Energy Ventures Ltd (REVL) with itself at meeting held in Mumbai today..
The proposed scheme of amalgamation envisages a share exchange ratio of 7.5 (seven-and-half) equity shares of the face value of Rs10 of REL, for every 100 equity shares of the same face of REVL after the allotment of shares pursuant to the demerger of RIL. The share exchange ratio is based on the number of shares of REL held by REVL, and as recommended by KPMG.
The shares held by REVL will be cancelled under the proposed scheme of amalgamation. The fully diluted equity capital of REL will remain at approximately Rs228 crore, excluding the impact on conversion of foreign currency convertible bonds issued by it.
The proposed scheme of amalgamation is subject to statutory and legal approvals of the Mumbai High Court.