scorecardresearch
Clear all
Search

COMPANIES

No Data Found

NEWS

No Data Found
Sign in Subscribe
Reliance Capital shares to delist from BSE, NSE; stock investors to get nothing

Reliance Capital shares to delist from BSE, NSE; stock investors to get nothing

Reliance Capital said the stock exchanges will take all necessary actions to delist the equity shares of RCL; in accordance with the approved resolution plan read with applicable law, including, but not limited to the SEBI (Delisting of Equity Shares) Regulations, 2021, as amended and shall pass necessary orders / directions to this effect.

Reliance Capital shares to delist from BSE, NSE; stock shareholders to get nothing Reliance Capital shares to delist from BSE, NSE; stock shareholders to get nothing

Reliance Capital Ltd on Thursday informed stock exchanges that the resolution plan submitted by the Hinduja group firm IndusInd International Holdings Ltd (IIHL) for the Reliance Anil Dhirubhai Ambani Group (ADAG) company has been approved by the NCLT on February 27, 2024. 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.

At present, public shareholders owned 98.49 per cent stake in Reliance Capital and Reliance Capital promoters owned the rest 0.88 per cent stake. Following the delisting, IIHL would own Reliance Capital fully and the value of 98.49 per cent stake that equity investor hold in the company will turn nil or zero. IIHL would pay Rs 9,650 crore for Reliance Capital upfront in cash.

"The liquidation value of the equity shareholder of RCL is NIL and hence, equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL. The entire existing share capital of RCL is proposed to be cancelled and extinguished for NIL consideration by virtue of the NCLT Approval Order such that IIHL and/or the Implementing Entity, and its nominees, are the only shareholders of the Corporate Debtor," Reliance Capital said.

"The liquidation value of the equity shareholder of RCL is NIL and hence, equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL. The entire existing share capital of RCL is proposed to be cancelled and extinguished for NIL consideration by virtue of the NCLT Approval Order such that IIHL and/or the Implementing Entity, and its nominees, are the only shareholders of the Corporate Debtor," Reliance Capital said.

Reliance Capital said the stock exchanges will take all necessary actions to delist the equity shares of RCL; in accordance with the approved resolution plan read with applicable law, including, but not limited to the SEBI (Delisting of Equity Shares) Regulations, 2021, as amended and shall pass necessary orders / directions to this effect.

Reliance Capital shares last traded on February 26. The stock closed at Rs 11.79 that day, down 4.46 per cent on BSE. The company commanded a market capitalisation of Rs 297.94 crore. The stock has eroded 94 per cent of its value in the last five years.

Also read: Hot stocks on February 28: IREDA, Vodafone Idea, Tata Motors, YES Bank, Venus Pipes and more

Also read: Stock recommendations by analysts for February 28: Tata Communications, BEL and V-Guard

Also read: Sensex dives over 550 points, Nifty slips below 22,050: Key reasons behind the fall

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Feb 28, 2024, 12:56 PM IST
×
Advertisement
Check Stock Price
Reliance Capital Ltd
Reliance Capital Ltd