New Delhi: Country’s leading retailer Reliance Retail Friday said it will reduce the equity share capital to the extent held by shareholders other than its promoter and holding company.
The board of Reliance Retail, July 4, 2023, approved the proposal in which shares held by such shareholders shall stand cancelled and extinguished as per the capital reduction plan.
“A consideration of Rs 1,362 per share, determined on the basis of valuation obtained from two reputed independent registered valuers, shall be paid towards the capital reduction,” said an exchange filing by its parent firm Reliance Industries.
This capital reduction plan will make Reliance Retail a 100 per cent subsidiary of Reliance Retail Ventures Limited (RRVL) and through this, it will be able to more efficiently structure businesses.
RRVL, the promoter and the holding company of Reliance Retail, holds 99.91 per cent of the share capital of the company.
While 0.09 per cent, around 78.65 lakh equity shares, are held by the identified shareholders.
Reliance Retail will be sending a notice to its shareholders for this capital reduction.
However, it also added this capital reduction shall be subject to regulatory approvals and also by members of the company by way of special resolution and obtaining the sanction from the National Company Law Tribunal, Mumbai bench.
Presently Reliance Retail’s equity shares are not listed, hence the valuation was determined by two independent registered valuers appointed by the company — Ernst & Young Merchant Banking Services and BDO Valuation Advisory LLP.
Ernst & Young had valued Rs 884.03 per share, while BDO Valuation Advisory LLP has put the price of Rs 849.08 per share.