Reliance Capital Delisting and Acquisition

"Reliance Capital is on track to be removed from the stock exchanges and converted into a private entity by the Hinduja Group-led IndusInd International Holdings.

Upon the execution of an endorsed resolution plan, the shares of Reliance Capital (RCL), grappling with debt, will be officially removed from the stock exchanges, complying with the orders of the National Company Law Tribunal (NCLT) and the Securities and Exchange Board of India (Sebi) regulations for the delisting of equity shares in 2021. Reliance Capital’s stock on the BSE concluded Wednesday’s trading session 4.46% lower at Rs 11.8.

As per the resolution plan, shareholders will not receive any compensation for the delisting. The company stated in a filing with the stock exchanges that ““The liquidation value of the equity shareholder of RCL is nil and, hence, the equity shareholders will not be entitled to receive any payment and no offer will be made to any shareholder of RCL.”” Additionally, it mentioned that ““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.””"