Reliance Capital Limited (RCL) declared on Wednesday the potential delisting of its shares from the stock exchanges as per the approved resolution plan. Trading in the stock has been halted, with its most recent recorded decline of 4.46 per cent, reaching Rs 11.79 on Friday.
It is noted in an exchange filing that the proposed measures to meet the Minimum Public Shareholding, as per the incoming investor or acquirer, were considered not applicable. This decision of the firm is based on the approved resolution plan, which includes the delisting of current equity shares.
In accordance with the NCLT order and compliance with the Securities and Exchange Board of India (SEBI) (Delisting of Equity Shares) Regulations, 2021, the equity shares of RCL are scheduled for delisting from stock exchanges.
“The equity shares of RCL will stand delisted from the stock exchanges in accordance with the order of the NCLT read with SEBI (Delisting of Equity Shares) Regulations, 2021. The liquidation value of the equity shareholder of RCL 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,” the firm said.
“The entire existing share capital of RCL is proposed to be cancelled and extinguished for NIL consideration by virtue of the NCLT Approval Order such that IIHL and/or the Implementing Entity, and its nominees, are the only shareholders of the Corporate Debtor. The stock exchanges shall take all necessary actions to delist the equity shares of RCL; in accordance with the Approved Resolution Plan read with applicable law, including, but not limited to, the SEBI (Delisting of Equity Shares) Regulations, 2021, as amended and shall pass necessary orders/directions to this effect,” it added.
The NCLT’s approval on Tuesday of the resolution plan proposed by IndusInd International Holdings, a Hinduja Group subsidiary, for Reliance Capital represents a significant step forward in addressing the financial challenges faced by Reliance Capital.
The approved resolution plan, valued at Rs 9,650 crore, was initially presented by IndusInd International Holdings during the second bidding round for Reliance Capital in June 2023.
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