In a major move to reward shareholders of Reliance group, Anil Ambani-controlled Reliance Capital Ltdon Mondayapproved the merger of Reliance Capital Ventures Ltd (RCVL) with itself for which the share swap ratio has been fixed at 5:100.
The board of directors have approved the scheme of amalgamation, which entails a share exchange ratio of 5 share of Reliance Capital for every 100 share of Reliance Capital Ventures following the demerger scheme announced by Reliance group.
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RCL informed the Bombay Stock Exchange that the share exchange ratio is based on the number of shares of the company held by RCVL, as it was valued by global management consultancy firm KPMG.
The shares of the company held by RCVL will be cancelled under the proposed scheme of amalgamation.
The fully diluted equity capital of the company will remain at approximately Rs 245 crore, it said.
The proposed scheme comes as a bonanza for 23 lakh shareholders of Reliance Industries, who will be entitled to free shares of four Anil Ambani group companies. This will lead to enhancement of their value, elimination of dual listing of the company and RCVL.
The other benefit of the merger include elimination of potential "holding company" discount through RCVL market price, increased liquidity for all the company's shareholders and wider domestic and international shareholder base for the company, it said.
Reliance Capital's shares closed at Rs 441.45 on Monday, on the Bombay Stock Exchange.
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The board of directors have approved the scheme of amalgamation, which entails a share exchange ratio of 5 share of Reliance Capital
Reliance Capital
Operations. Reliance Capital offers a range of financial services in many business lines. The company is one of the most diversified financial services firms in India with interests expanding from asset management, insurance, commercial finance, broking, private equity to other niche financial services.
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Reliance Capital approved the merger of Reliance Capital Ventures with itself for which the share swap ratio has been fixed at 5:100. MUMBAI: Anil Ambani-controlled Reliance Capital on Monday approved the merger of Reliance Capital Ventures (RCVL) with itself for which the share swap ratio has been fixed at 5:100.
The name Reliance Capital came into effect on 5 January 1995. In 2002, Reliance Capital Ltd shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006. In 2006, Reliance Capital Ventures Limited merged with Reliance Capital.
In mergers and acquisitions (M&A), the exchange ratio measures the number of shares the acquiring company has to issue for each individual share of the target firm. For M&A deals that include shares as part of the consideration (compensation) for the deal, the share exchange ratio is an important metric.
50,000 crore (US$ 11 billion) all stock deal, subject to necessary approvals. The Boards approved an exchange ratio of 1 equity share of Reliance Power for every 4 equity shares of RNRL.
Reliance Infrastructure Limited (R-Infra), formerly Reliance Energy Limited (REL) and Bombay Suburban Electric Supply (BSES), is an Indian private sector enterprise involved in power generation, infrastructure, construction and defence. It is part of the Reliance Anil Dhirubhai Ambani Group.
Reliance Industries's current ratio for fiscal years ending March 2020 to 2024 averaged 1.1x. Reliance Industries's operated at median current ratio of 1.1x from fiscal years ending March 2020 to 2024. Looking back at the last 5 years, Reliance Industries's current ratio peaked in March 2021 at 1.3x.
In order to calculate the swap ratio, there are certain financial ratios of the companies that are analysed in the share swap ratio formula. This includes profits after tax, earnings per share, book value, and other factors like company size, strategic reasons for acquisition or merger, and long-term debts.
With this, equity shares of Reliance Capital will get delisted from the stock exchanges and the entire existing share capital of Reliance Capital will be cancelled and extinguished for 'zero' consideration. In simple terms, equity shareholders (stock investors) will get nothing from the resolution.
Reliance Energy today approved the merger of Reliance Energy Ventures Ltd (REVL) in a 7.5:100 swap ratio. This means shareholders of REVL will get 7.5 shares of Reliance Energy for every 100 shares they hold.
Shareholders of TRF were to get 17 shares of Tata Steel for every 10 shares that they held, as part of the merger swap ratio. Shares of TRF, post the 20% jump on Wednesday are almost back at the levels at which they were when the merger was announced in September 2022.
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