India's leading retailer, Reliance Retail has announced plans to invest in shares held by shareholders other than its promoter and holding company.
Under the scheme, the shares held by the non-promoter shareholders shall be canceled and liquidated.
The valuation of Reliance Retail shares was determined by two reputed independent registered valuers.
Shareholders who are not part of the promoter group or RRVL will receive a consideration of Rs 1,362 per share towards capital reduction.
RRVL, the promoter and holding company of Reliance Retail, currently holds 99.91% of the company's share capital.
Identified shareholders outside the promoter group hold the balance 0.09% equity shares, amounting to approximately 78.65 lakh equity shares.
Reliance Retail will issue a notice to its shareholders regarding the capital reduction plan.
The capital reduction plan is subject to regulatory approval and must be approved by the members of the company through a special resolution.
The implementation of the capital reduction plan will help Reliance Retail to achieve a more efficient business structure as a 100% subsidiary of RRVL.
At present, the equity shares of Reliance Retail are not listed on any stock exchange.
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