“The liquidation value of the equity shareholder of RCL (Reliance Capital) is nil and hence, equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL,” according to an exchange filing by RCL
Mumbai:
Hinduja Group, after getting approval from the National Company Law Tribunal(NCLT) for its debt resolution plan for the insolvent Reliance Capital Limited (RCL), plans to delist the stock from the exchanges by extinguishing the shares.
“On the successful completion of the resolution plan, the shareholding of the company will change whereby the Hinduja Group Company will acquire the majority of shares and the company will cease to be listed on stock exchange and will no longer be a company in which the public are substantially interested,” Reliance Capital has informed the stock exchanges.
“The liquidation value of the equity shareholder of RCL (Reliance Capital) is Nil and hence, equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL,” according to an exchange filing by RCL.
As per the Resolution Plan submitted by RCL, there is change in shareholding on the successful implementation of the Resolution Plan whereby the existing shareholding of the company will be cancelled and new shares will be issued to the companies nominated by Hinduja Group.
After the change of shareholding, the company will not continue to be a company in which public are substantially interested as the existing shares are getting cancelled and the company will be delisted and new shareholding will not make the company, a company in which the public are substantially interested, said RCL.
However, no final decision on the matter can be taken by the lenders of RCL now as the Supreme Court’s stand on the Torrent Investment’s plea against the second round of auction held by the lenders of RCL is still pending with the apex court.
Apart from other financial entities, RCL is also the holding company of two insurers-Reliance General Insurance and Reliance Nippon Life Insurance.
IIHL had emerged as the highest bidder with an offer of ₹9,650 crore to take over debt-ridden Reliance Capital in the second round of auction concluded in April 2023.