Oil to telecom major Reliance Industries (RIL) has proposed a swap arrangement scheme that allows shareholders of Reliance Retail to exchange their shares for RIL shares, the company said in a statement.
Under the arrangement, Reliance Retail shareholders will get one share of RIL in exchange for four shares. Reliance Retail is an unlisted subsidiary of Reliance Retail Ventures and an indirect subsidiary of RIL.
“The Company had implemented two schemes namely Reliance Retail Employees’ Restricted Stock Unit Plan 2006 and 2007 under which Restricted Stock Units (RSUs) have been allotted to eligible employees. On exercise of the RSUs by some of the employees, Equity Shares have been allotted to them,” RIL said.
The swap ratio values the RIL’s retail business at around Rs 2.5 lakh crore.
Earlier in August, RIL had said that it would list Reliance Retail on the stock exchanges in next five years. Reliance Retail clocked net sales of Rs 1.3 lakh crore last year and has built a network of 10,644 stores.
RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
First Published: IST