07 July 2023
Billionaire Mukesh Ambani-led Reliance Industries (RIL) on Friday 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.
"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 a notice to its shareholders for this purpose," it said.
After the capital reduction, the number of shares in the company will decrease. 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.