RIL makes Reliance Retail compulsory share swap optional
today Jan 24, 2020
Reliance Industries changed its Reliance Retail share swap for RIL shares from mandatory to optional for retail investors at an extraordinary general meeting on January 23 following push-back from minority shareholders.
Although Reliance Retail, which is an unlicensed subsidiary of Reliance Retail Ventures and an indirect subsidiary of Reliance Industries, has made its share swap optional, those that choose to participate must swap their entire holding.
“No partial swap will be entertained by the company management,” sources in the unlisted market told ET Markets.
“The scheme provided for exchange of RIL shares with shares of Reliance Retail,” a spokesperson for Reliance Retail told ET Markets. “The scheme was proposed to provide liquidity to the shareholders of RRL. It was clarified that the option was available to exchange or retain RRL shares.”
RIL had originally announced in December, 2019 that RRL minority shareholders had to swap their shares for RIL shares at a ratio of 4:1. The swap was made optional after a number of minority shareholders challenged the decision and recently won the case at the National Company Law Tribunal.
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