Mumbai: The Bombay High Court has given an approval to Reliance Industries Ltd.'s (RIL) demerger scheme and the court has also refused to put a stay on the order.
RIL's share price gained by more than a per cent following the report of the court's approval.
RIL is in the process of demerging its stake in Reliance Energy, Reliance Capital and Reliance Infocomm as part of a settlement reached between Mukesh and Anil Ambani.
The demerger was held up by a plea from a Reliance shareholder, who said that it was more of a family arrangement than a business separation.
The scheme basically proposes to demerge four entities of RIL, which are, telecommunications, coal-based and gas-based energy and financial service businesses.
The four undertakings would be known as Reliance Communications Venture Ltd, Reliance Energy Ventures Ltd, Reliance Capital Venture Ltd and Global Fuel Management Services.
RIL's investment stood at approximately Rs 15,400 crore in Reliance Communications Ventures Ltd, Rs 3,000 crore in Reliance Energy Ventures Ltd and Rs 600 crore in Reliance Capital Venture Ltd at the time of declaration of the demerger scheme.
So what does this demerger mean for you as an investor?
If you are among the lucky ones who have 100 shares of Reliance Industries, you are entitled to five shares of Reliance Communications, seven shares of Reliance Energy and 100 shares each in Global Fuel Management Services and Reliance Capital Ventures.
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