Mukesh Ambani-led Reliance Industries has restructured its consumer brands business by dissolving RCPL and creating a new entity, New RCPL.
The company informed the exchanges that the composite scheme of arrangement involving its group companies has become effective from December 1.
Reliance dissolves RCPL as restructuring
The scheme of arrangement between Reliance Retail (RRL), Reliance Retail Ventures (RRVL), Reliance Consumer Products (RCPL), and Tira Beauty — will be renamed as Reliance Consumer Products (New RCPL).
RCPL, a subsidiary of the company, stands dissolved as of December 1.
Following the share restructuring, New RCPL will become an 83.56% direct subsidiary of Reliance Industries.
Share allotment to RRVL shareholders
As part of the deal, the consumer brands business has been demerged from RRVL and transferred to New RCPL. To compensate for this transfer, New RCPL will allot one fully paid-up equity share of Rs 10 each for every two fully paid-up equity shares of Rs 10 each held by shareholders of RRVL.
The fresh allotment applies to all shareholders of RRVL.
Cancellation of existing New RCPL shares
After the allotment, the entire pre-scheme paid-up share capital of New RCPL held by RRVL will be cancelled and reduced without any consideration. This means New RCPL will no longer exist as a wholly-owned entity of RRVL.
Share price of Reliance Industries
The share price of Reliance Industries has gained 26.96% so far this year