Mukesh Ambani-led RIL at record high; retail arm’s board approves share capital reduction

Shares of Reliance Industries soared as much as 4.54 per cent to hit record high of Rs 2,756 after the board of Reliance Retail approved reduction in the company's equity share capital.

Reliance Industries to buy out shareholders of Reliance Retail

Reliance Industries is planning to buy out minority shareholders of its retail business, Reliance Retail, for up to Rs 1,071.27 crore. The company will make the retail unit a fully promoter-owned company. This development can be seen as a preliminary step towards a potential demerger and a separate listing of Reliance's business.

The board of Reliance Retail approved a proposal to reduce equity share capital. They would be reduced to the extent held by shareholders other than its promoter and holding company, Reliance Retail Ventures Ltd (RRVL).

About 99.91 per cent of Reliance Retail shares are held by Reliance Retail Ventures, while the remaining 0.09 per cent is held by other shareholders.

Allotment of shares for demerger process 

In another development, Reliance Industries fixed July 20 as the record date for allotment of equity shares in the demerger process of its financial services company into Reliance Strategic Investments Ltd (RSIL), on Saturday.

"Thursday, July 20, 2023, has been fixed as the Record Date for the purpose of determining the equity shareholders of the Company (RIL) entitled to receive the Resulting Company (RSIL) New Equity Shares," said an exchange filing from the company.

Reliance Industries said In October 2022 that it would demerge its financial services undertaking into RSIL. It will be renamed Jio Financial Services Ltd. 

As of 12:00 pm, Reliance Industries' shares were trading at Rs 2,741.05, 4.08 per cent higher than the previous day's close of Rs 2,633.60 on the NSE.