Reliance Capital to be delisted from stock exchanges, shares drop 4.46%

Reliance Capital Limited (RCL) announced on Wednesday that its shares might be delisted from stock exchanges as part of the approved resolution plan.

Trading in the stock has been restricted. Shares of Reliance Capital last traded on February 26 when they declined 4.46 per cent to Rs 11.79.

In the exchange filing, it was noted that the proposed steps to achieve the minimum public shareholding, as per the incoming investor or acquirer, were deemed not applicable. This decision is in line with the approved resolution plan, which outlines the delisting of existing equity shares.

Following the National Company Law Tribunal (NCLT) order and following the Securities and Exchange Board of India (Sebi) Delisting of Equity Shares Regulations, 2021, RCL's equity shares 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 shareholders 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 company stated.

"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.

On Tuesday, the NCLT approved the resolution plan put forth by IndusInd International Holdings, an affiliate of the Hinduja Group, for Reliance Capital.

This approval marks a significant milestone in Reliance Capital's ongoing efforts to navigate through its financial difficulties.

The endorsed resolution plan, valued at Rs 9,650 crore, was first proposed by IndusInd International Holdings in June 2023 during the second bidding phase for Reliance Capital.