Financial Daily from THE HINDU group of publications
Tuesday, Jan 03, 2006

News
Features
Stocks
Shipping
Archives
Google

Group Sites

Home Page - Diversified
Corporate - Restructuring


Reliance Cap, Ventures swap ratio at 5:100

Our Bureau

Mumbai , Jan. 2

SHAREHOLDERS of Reliance Capital Ventures (RCVL) will get five shares of Reliance Capital Ltd (RCL) for every 100 shares of RCVL, both the shares being of face value of Rs 10 each.

The process of demerger of the Reliance Group into entities that will be separately led by the Ambani brothers got off to a start today with the board of directors of Reliance Capital Ltd approving the merger of RCVL with RCL. The share exchange ratio is based on the number of shares of the company held by RCVL and is as recommended by KPMG, an RCL statement said.

RCVL holds 29 per cent equity stake in RCL. The shares of the company held by RCVL will be cancelled under the proposed scheme of amalgamation.

The fully diluted equity capital of the RCL will remain at approximately Rs 245 crore.

This decision is also subject to approvals from the board of RCVL, the shareholders of RCL and RCVL, and the High Courts in Mumbai and Gujarat.

On Tuesday, the board of directors of Reliance Energy is scheduled to meet to consider a proposal for the merger of Reliance Energy Ventures Ltd (REVL) with REL.

The demerger from the Reliance group of the companies that will be in the Anil Dhirubhai Ambani (ADA) Enterprises fold will lead to the formation of four "resultant companies", which will apply to the SEBI for approval to list on the stock exchanges without making an IPO, a statement from ADA Enterprises last week said. The company whose listing is most keenly awaited is that of Reliance Communications Ventures Ltd, the holding company of Reliance Infocomm Ltd.

The details of this demerger will be announced separately.

Related Stories:
Reliance Capital, Reliance Energy boards to meet on group cos' mergers
RIL promoters to consolidate holding thru group transfer

More Stories on : Diversified | Restructuring

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Reliance Cap, Ventures swap ratio at 5:100


Westerly system stagnates, kicks up rain/snow in North
RBI declines priority sector status for wind power loans
Videocon plans mega FCCB issue to fund expansion
Sugar output may turn out to be less than current estimates
Software upgrades tough on SMEs
TRAI panel proposes 74% FDI in cable TV operations
India-specific ETF lists on LSE — Fund eyes mid-cap space
Left opposes divestment in profitable PSUs
Mid, small-cap stocks open New Year on a high — Fertiliser, sugar in the limelight
Sify offloads 26 pc in Safescrypt to Satcom — Subsidiary plans to apply for NLD/ILD licence
CBDT extends time for filing quarterly returns on deposits
Air Sahara offers Delhi-London for Rs 10,000
Innovation can help add $20 b to IT exports: Nasscom
Ayurvedic exports to sport label on heavy metals from today


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line