Reliance-JFSL demerger: Ahead of Reliance Industries Ltd (RIL) and Reliance Strategic Investments Limited demerger, The RIL board has declared cost of acquisition of Reliance and Jio Financial Services Ltd. As per the latest exchange filing of the Reliance Industries has informed Indian stock market exchanges that after demerger, cost of acquisition for Reliance Industries Ltd would be 95.32 per cent while the rest 4.68 per cent for Reliance Strategic Investments Limited.
RIL-JFSL demerger: Cost of acquisition details
RIL informed Indian bourses about the cost of acquisition of RIL and Jio Financial Services Ltd ahead of demerger citing, “For the purpose of determining the post demerger cost of acquisition of equity shares of the Company and RSIL, you are advised to apportion your pre demerger cost of acquisition of equity shares in the Company in the following manner: Reliance Industries Limited (95.32%), Reliance Strategic Investments Limited (4.68%).”
On Reliance-JFSL demerger scheme, the Sensex heavy weight said, “In accordance with provisions of the Scheme, RSIL shall issue and allot 1 (One) fully paid-up equity share of RSIL having face value of ₹10 (Rupees Ten) each for every 1 (One) fully paid-up equity share of ₹10 (Rupees Ten) each of the Company to the shareholders of the Company whose names are recorded in the register of members and / or records of the depository as on the Record Date (i.e., Thursday, July 20, 2023).”
The National Company Law Tribunal, Mumbai Bench, vide its order dated June 28, 2023, sanctioned the Scheme of Arrangement between Reliance Industries Limited and its shareholders and creditors & Reliance Strategic Investments Limited (“RSIL”) and its shareholders and creditors (“Scheme”) providing, inter alia, for demerger, transfer and vesting of the Financial Services Business (Demerged Undertaking as defined in the Scheme) from the Company into RSIL on a going concern basis and issue of equity shares by RSIL to the shareholders of the Company, in consideration thereof, in accordance with the provisions of Section 2(19AA) of the Income Tax Act, 1961.
Shares of Reliance Industries (RIL) will not be available for normal trading for the first 45 minutes on Thursday, July 20 as a result of the demerger of its financial services arm. RIL shares will go through a special pre-open call auction today on the demerger of Jio Financial Services Ltd (JFSL) between 9:00 am to 10:00 am. During this session, one can only place, cancel, or modify the orders.
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Updated: 20 Jul 2023, 08:31 AM IST