Reliance Retail to buy out minority shareholders
11 Jul 2023
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The board of directors of Reliance Retail Limited, at its meeting on 4 July 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.
The decision of Reliance Industries Limited (RIL) to reduce the equity share capital of Reliance Retail Limited (RRL), its subsidiary, is being viewed as a step towards a potential listing. On Friday, a statement from RIL said the reduction is to the extent of the holding of the promoter or the holding company.
In terms of actual shareholding, RIL’s stake in Reliance Retail Ventures is 85.06 per cent; in turn the latter holds 99.93 per cent in RRL. Over three years, a host of global investors, amongst which were KKR, Mubadala, Abu Dhabi Investment Authority, General Atlantic, GIC and TPG, put in over Rs 47,000 crore for a 10.09 per cent stake in Reliance Retail Ventures.
Upon such reduction, the shares held by such shareholders will stand liquidated. The capital reduction shall be pursuant to Section 66 of the Companies Act, 2013 and shall be subject to approval by members of the company by way of special resolution and obtaining the sanction and confirmation from the National Company Law Tribunal, Mumbai bench. The company will be sending notice to its shareholders for this purpose.
These outstanding share will be bought at a consideration of Rs1,362 per share, determined on the basis of valuation obtained from two reputed independent registered valuers.
Shares of Reliance Industries Limited was last trading in BSE at Rs2,635.45, slightly down from the previous close of Rs2,638.35. The total number of shares traded during the day was 576,768 in over 31,686 trades.
The stock hit an intraday high of Rs2,665.00 and intraday low of Rs2,627.40. The net turnover during the day was Rs15,24,318,808.
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