MUMBAI: Shares of Anil Ambani Group firm Reliance Natural Resources (RNRL) will stop trading on the stock exchanges from November 10, as the company has merged with group firm Reliance Power, according to the National Stock Exchange.
"RNRL will be be suspended from trading with effect from November 10," according to a circular on the National Stock Exchange.
Last month, RPower said November 11 has been fixed as the record date for allotment of company shares to RNRL shareholders as per the merger scheme.
As per the scheme of arrangement of RPower and RNRL and other group companies and their respective shareholders and creditors, RPower will issue one share of Rs 10 face value for every four RNRL shares with a face value of Rs 5.
The merger of the two companies will result in an increase in the shareholder base of RPower to around 60 lakh from the present level of 35 lakh.
Shareholders have already approved the merger of the two companies.
Following the amalgamation, RPower's net worth would rise by over Rs 16,000 crore, with the erstwhile RNRL adding Rs 1,900 crore to its total value.
In addition, RNRL's gas supply agreement with Reliance Industries will accelerate the implementation of RPower's plans to set up over 8,000 MW of gas-based power generation capacity. Furthermore, the power major will be able to utilise gas from RNRL's coal bed methane projects.
RNRL's shareholders will also benefit from the RNRL's substantial coal reserves and diversified generation portfolio of 37,000 MW.
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