Mukesh Ambani-led Reliance Retail approves reduction in equity share capital

Reliance Retail, India's biggest retailer and a unit of Indian conglomerate Reliance Industries, said on Friday its board approved reducing the company's equity share capital.

Reliance Retail said that except for the shares owned by its holding company, Reliance Retail Ventures, the rest of the stock will be extinguished or cancelled at a price of 1,362 rupees each on the basis of a valuation from independent registered valuers.

Reliance Retail Ventures holds about 99.91 per cent of Reliance Retail and 0.09 per cent is held by other shareholders, a source with direct knowledge of the matter said.

The share capital reduction comes as the stock is being traded privately at random prices without any fair price discovery, the source said, declining to be named due to the confidentiality of the matter.