Reliance Retail to swap their units with RIL

           

Reliance Retail to swap their units with RIL shares

        Reliance Industries Limited has offered the shareholders of its subsidiary and unlisted units to Reliance Retail to swap their units with RIL shares . Reliance Retail shareholders will get one share of Reliance Industries Limited against four reliance retail shares as per the agreement. The company’s shares are not listed on any stock exchange. The swap ratio values the retail business at Rs 2.5 lakh crores.

The scheme will be applicable to Reliance Retail employees, who were allotted shares, under various employee stock option plans. This arrangement will help enhance liquidity as employees will own shares that can be traded on a stock exchange.

     

          Reliance Retail has grown to become India’s largest retailer delivering superior value to its customers, suppliers and shareholders. Reliance Retail has emerged as India’s largest retailer, driven by strong growth in fashion and consumer electronics. Also, the company has been planning a new commerce venture , an offline to online initiative to take on rivals like Amazon and Walmart  which would link producers, traders ,small merchants, brands and consumers through technology. It has been working on its new commerce plan for nearly two years. Currently, it operates neighborhood stores, supermarkets, hypermarkets, wholesale, speciality  and online stores. Reliance Retail is having 10,901 stores across the country and it is India’s largest chain of neighborhood supermarket stores and consumer electronics stores besides being the top wholesale supplier to small shopkeepers.

       The scheme also enables the shareholders to continue to participate in the growth of the retail business, as  since the company is an indirect subsidiary of Reliance Industries .

"Since, the scheme does not contemplate any outflow of funds/assets of the Company, the aggregate of ‘equity and other equity’ of the company pre and post-implementation of the scheme will remain the same and unaltered," Reliance Industries Limited” told.