Reliance Retail Share Price; Buy back Rs 1k cr to hold 100%
Reliance Industries Limited (RIL) has unveiled a capital reduction plan aimed at streamlining its business structure and enhancing operational efficiency.
The proposed consideration of Rs 1,362 per share in the capital reduction plan represents a premium compared to the valuations provided by the independent valuers. which values the company at Rs 12.25 lakh crore ($148 billion)
As a result, Reliance Retail will transition into a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL).
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The current grey market trading value for Reliance Retail shares stands at Rs 3,000 per share.
The capital reduction program entails reducing Reliance Retail’s equity capital held by shareholders other than the founders and RRVL, as outlined in a recent regulatory filing.
Once implemented, these shares held by non-founders and non-RRVL shareholders will be nullified.
At present, RRVL possesses 99.91% of the share capital, with the remaining 0.09% (approximately 78.65 lakh equity shares) owned by specific shareholders.
It has come to light that some employees of Reliance Retail converted their Employee Stock Ownership Plan (ESOP) into shares, subsequently selling them in the grey market.
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The decision to reduce these shares is driven by the belief that their current value in the volatile grey market does not accurately reflect their fair price.
Additionally, RIL intends to list RRVL in the future, making it advantageous to hold a 100% stake in Reliance Retail under such circumstances.
As Reliance Retail’s equity shares are not currently listed on any stock exchange, their valuation was determined by independent registered valuers appointed by the company: Ernst & Young Merchant Banking Services and BDO Valuation Advisory.
Ernst & Young assessed the value of Reliance Retail shares at Rs 884.03 per share, while BDO Valuation Advisory set it at Rs 849.08 per share.
