Updated February 28th, 2024 at 13:24 IST

Reliance Capital shares to be delisted from stock exchanges

The filing outlined that the 'Approved Resolution Plan' by the NCLT includes provisions for the delisting of the company's existing equity shares

Reported by: Business Desk
Reliance Capital | Image:X Photo
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Shares of Reliance group company Reliance Capital will be delisted from stock exchanges as part of the Approved Resolution Plan following order from National Company Law Tribunal (NCLT).

The NCLT has given its seal of approval to the resolution plan for the company, paving the way for potential delisting of existing equity shares from the exchanges, as per an exchange filing by the company.

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The filing outlined that the 'Approved Resolution Plan' by the NCLT includes provisions for the delisting of the company's existing equity shares, a move that aligns with the broader restructuring strategy outlined in the plan.

As part of the proposed steps detailed in the filing to achieve the Minimum Public Shareholding, the company indicated that such measures are not applicable given the contemplation of delisting existing equity shares as per the approved plan.

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Under the NCLT order and in accordance with SEBI (Delisting of Equity Shares) Regulations, 2021, it has been decreed that the equity shares of the company will undergo delisting from stock exchanges. The liquidation value assigned for the company's equity shareholders stands at NIL, implying that they will not receive any form of compensation or offer in the delisting process.

Furthermore, the NCLT Approval Order stipulates that the entire existing share capital of the company will be canceled and extinguished without compensation. Following delisting, IIHL and/or the Implementing Entity, along with their nominees, are poised to emerge as the sole shareholders of the company.

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In compliance with the Approved Resolution Plan and pertinent regulations, including the SEBI (Delisting of Equity Shares) Regulations, 2021, the stock exchanges are poised to initiate delisting procedures, marking a significant milestone in the restructuring journey of the company.
 

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Published February 28th, 2024 at 13:24 IST