The newly constituted Boards of Reliance Capital Ventures and Reliance Energy Ventures on Wednesday approved their merger with flagship financial services company Reliance Capital and power entity Reliance Energy Ltd.
"The proposed scheme of amalgamation envisages a share exchange ratio of five equity shares of RCL for every 100 shares of RCVL," Reliance-ADAG said in a statement.
Similarly, the exchange ratio of 7.5 equity shares of REL for every 100 shares of REVL has been fixed, it said.
The proposed scheme of amalgamation is subject to approvals from shareholders of the companies, stock exchanges, High Courts of Gujarat and Mumbai and all other requisite permissions and sanctions, the Reliance-ADA Group said.
The exchange ratio of shares has been worked out on the recommendations of international consulting firm KPMG.
The Boards of Reliance Energy Ltd and Reliance Capital had already approved the merger last month. Subsequent to the amalgamation, the shares of RCL and REL held by RCVL and REVL respectively would be cancelled.
The amalgamation is being done for the benefit of 22 lakh shareholders of both REL and RCL, ADAG said, adding that the merger would also eliminate dual listing of companies.