Reliance Retail shareholders able to exchange stock for RIL shares under new scheme
Mukesh Ambani’s Reliance Industries Limited has proposed a scheme where shareholders of its unlisted subsidiary Reliance Retail will be able to exchange stock for shares of RIL in a move to enhance liquidity.
Reliance Retail shareholders will be able to get one RIL share in exchange for four of their Reliance Retail shares under the business’ new proposed scheme, ET Bureau reported. The proposed scheme will be applicable to business employees who have been allotted shares and restricted stock units under different employee programs.
This swap ratio values Reliance Retail at Rs 2.5 lakh crore, more than double of its closest competitor D’Mart and the proposal will not change the capital structure of either Reliance Retail or RIL, according to the business. Reliance Retail had already started to trade its shared on the unlisted market in June this year. In August this year, RIL announced that Reliance Retail will be officially listed by 2024.
Reliance Retail, launched by RIL in 2006, comprises a chain of fast moving consumer goods stores and now counts 10,644 clothing, lifestyle, grocery, and electronics stores across India following a Rs 14,000 crore investment. In the previous financial year, the business opened 2,829 stores and reported net sales of Rs 1.3 lakh crore.
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