Reliance Capital''s board approves amalgamation of Reliance Capital Ventures

The board of directors of Reliance Capital Ltd (RCL) has approved the proposal for amalgamation of Reliance Capital Ventures Ltd (RCVL) at its meeting held in Mumbai today.

The proposed scheme of amalgamation envisages a share exchange ratio of five equity shares of the face value of Rs10 each of RCL, for every 100 equity shares of the same face value of RCVL after the allotment of shares pursuant to the demerger of RIL. The share exchange ratio is based on the number of RCL shares held by RCVL, as recommended by KPMG.

The RCL shares held by RCVL will be cancelled under the proposed scheme of amalgamation. The fully diluted equity capital of the company will remain at approximately Rs245 crore.

This will lead to direct shareholding of the company by Reliance shareholders and would, RCL says lead to the enhancement of their value. The move will also bring to an end to the dual listing of the RCL and RCVL.

The proposed scheme of amalgamation is subject to statutory and legal approvals of the high courts of Gujarat and Mumbai.