Why Reliance Industries shares dropped 1.5% in opening trade

Shares of Reliance Industries fell 1.5 per cent in opening trade on Monday, in line with BSE Sensex which was down 1 per cent. Reliance Industries shares were under stress after the oil-to-chemical major announced that it had received nod for the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.

Reliance Industries share price declined as much as 1.53 per cent lower at Rs 1990.70 apiece in early deals on the Bombay Stock Exchange on Monday. The stock opened marginally higher at Rs 2,025 against previous closing price of Rs 2,021.70 on the BSE.

In a similar trend, RIL shares were quoting at Rs 2,007.05, down 0.73 per cent, against previous close price of Rs 2,021.85. The country's most valued stock hit a high and low of Rs 2,025 and Rs 2,000.05, respectively.

The Mukesh Ambani-led company in an exchange filing on Friday said it has received approval of its shareholders and creditors for O2C business spin-off in the meeting of the equity shareholders, lenders and unsecured creditors of the company, which was done as per the order of the National Company Law Tribunal (NCLT), Mumbai.

The company said that 99.99 per cent of shareholders, who participated in the meeting held through video conferencing, voted in favour of the resolution. While 100 per cent of the secured creditors voted in favour of the resolution, 99.99 per cent of unsecured creditors cast their vote in favour of the resolution.

"Scheme of Arrangement between Reliance Industries Limited (Transferor Company) and its shareholders and creditors and Reliance O2C Limited (Transferee Company) and its shareholders and creditors was placed before" equity shareholders, secured and unsecured creditors for consideration and approval, RIL said in the regulatory filing.

Meanwhile, the BSE Sensex was trading at 49,616.51, down by 413.32 points or by 0.83 per cent, and the NSE Nifty was quoting at 14,760.95, down by 106.4 points or by 0.72 per cent.

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Reliance gets shareholders, creditors approval to hive off O2C biz into separate unit