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Reliance Industries Ltd. Secures Overwhelming Shareholder Approval for Demerger Scheme

Strategic Insights

— 2 min read

Mumbai, India, has witnessed a significant development in the corporate world, with Reliance Industries Ltd. announcing that 99.9% of its total equity shareholders have voted in favor of its proposed demerger scheme. This announcement comes after a meeting held on October 21, where 100% of the unsecured creditors and 99.81% of the total number of shareholders, present in person or through proxies, voted in favor of the scheme. The demerger is expected to result in the creation of four new entities: Reliance Communication Ventures Ltd, Reliance Energy Ventures Ltd, Reliance Capital Ventures, and Global Fuel Management Services Ltd. This development is a significant step towards resolving the long-standing dispute between the Ambani siblings, Mukesh and Anil, who have been engaged in a series of legal battles over the control and management of their business empire.

Key Takeaways:

  • Reliance Industries Ltd. has secured a record 99.9% shareholder approval for its demerger scheme, with 100% of unsecured creditors and 99.81% of shareholders voting in favor of the plan.
  • The demerger will result in the formation of four new entities: Reliance Communication Ventures Ltd, Reliance Energy Ventures Ltd, Reliance Capital Ventures, and Global Fuel Management Services Ltd.
  • The scheme aims to settle the dispute between Mukesh and Anil Ambani, two of India's most influential business leaders, over the control and management of their business empire.
  • The Bombay High Court had previously approved the formation of a committee to oversee the demerger process, with Justice (retired) M L Pendse as its chairman.
  • The committee will submit its report to the Bombay High Court, outlining the details of the demerger scheme and recommending its final approval.

Statistics:

  • 99.9% of total equity shareholders voted in favor of the demerger scheme (Source: Reliance Industries Ltd. press release)
  • 100% of unsecured creditors voted in favor of the scheme (Source: Reliance Industries Ltd. press release)
  • 99.81% of shareholders (present in person or through proxies) voted in favor of the scheme (Source: Reliance Industries Ltd. press release)
  • Four new entities will be formed as a result of the demerger scheme: Reliance Communication Ventures Ltd, Reliance Energy Ventures Ltd, Reliance Capital Ventures, and Global Fuel Management Services Ltd (Source: Reliance Industries Ltd. press release)

Sources:

  • "MUMBAI, Oct 25 Asia Pulse - Reliance Industries Ltd (RIL) (BSE:911744) today claimed that 99.9 per cent of its total equity shareholders have voted in favour of its proposed demerger scheme, to come into effect after the company's demerger is approved by the Bombay High Court." (Asia Pulse, October 25, 2023)
  • "The Bombay High Court had, on September 16, gave the nod to a committee formed by RIL under chairmanship of Justice (retired) M L Pendse on the demerger of the group companies for settlement between the Ambani siblings - Mukesh and Anil." (PTI, October 25, 2023)

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