Reliance Industries on Wednesday said the fractional entitlements to shareholders of Reliance Petroleum, arising after the merger of both the Mukesh Ambani group companies, will be consolidated and go directly to a trustee.
“The board of directors of RIL shall consolidate fractional entitlements to which the shareholders of RPL may be entitled on issue and allotment of the equity shares of RIL and allot such fractional entitlement directly to an individual trustee or a corporate trustee, who shall hold such entitlements,” RIL said in a filing to the Bombay Stock Exchange.
Fractional entitlement arises when the shares held by shareholders of a company merging with another firm are unequal to the share swap ratio fixed for the merger.
Earlier in March, the board of both the companies had approved the all-share merger deal between the two Mukesh Ambani group firms — RIL and RPL.
Under the scheme, the company would be issuing one share in the merged entity for every 16 shares held in RPL — resulting into issuance of 6.92 crore new shares by RIL.
Besides, pursuant to the said merger the promoter shares of RPL would stand cancelled, when the scheme becomes effective.
“The share capital of RPL, held by RIL shall stand cancelled upon the scheme becoming effective without any further application and there would be no issuance of shares by RIL in relation to such shares,” the filing added.
On Tuesday, the company said it has fixed September 29 as the record date for the purpose of determining the shareholders of RPL who will be entitled to receive equity shares of the company in terms of the scheme of amalgamation of RPL with RIL.
Shares of RIL closed at Rs. 2,183.50, up 0.15 per cent on the BSE.
