Reliance Capital Shares To Be Delisted From Exchanges After NCLT Approves Hinduja Acquisition Plan

The company in the stock exchange filing announced that the National Company Law Tribunal (NCLT) in its 'approved resolution plan' for the company is contemplating delisting of existing shares from the stock exchanges.

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Reliance Capital Limited (RCL) has now announced that its existing shares are likely to be delisted from the stock exchanges after NCLT approved Hinduja's acquisition of the company on Tuesday.

The company in the stock exchange filing announced that the National Company Law Tribunal (NCLT) in its 'approved resolution plan' for the company is contemplating delisting of the existing shares from the stock exchanges, it informed mint

The exchange filing said: "Not applicable, as the Approved Resolution Plan provides for delisting of existing equity shares."

The National Company Law Tribunal on Tuesday approved Hinduja Group company IndusInd International Holdings' Rs 9,650-crore resolution plan to acquire bankrupt Reliance Capital Ltd.

Reliance Capital had a debt of over Rs 40,000 crore and bids were invited for Reliance Capital's resolution plan. Four applicants, including IIHL and Torrent Investments, participated in the offer with resolution plans, but the creditors' committee rejected all four plans due to lower offer values.

In June 2023, the committee selected firm Hinduja Group for its offer of Rs 9,661 crore cash upfront. Reliance Capital's cash balance of Rs 500 crore will also be transferred to lenders.

“RCL shares will be delisted from the stock exchanges as per the NCLT order read with the SEBI (Delisting of Equity Shares) Regulations, 2021. The liquidation value of the shareholder of RCL is NIL and therefore , the shareholders "Will not be entitled to receive any payment and no offer will be made to any RCL shareholder," the letter states.

“It is proposed to cancel and extinguish the entire existing share capital of RCL for NIL consideration under the NCLT Approval Order, so that IIHL and/or the Implementing Entity, and its representatives, are the sole shareholders of the Corporate Debtor. Stock exchanges will take all necessary measures to delist RCL shares; in accordance with the Approved Resolution Plan read with the applicable law, including but not limited to the SEBI (Deletion of Equity Shares) Regulations, 2021, as amended, and shall pass necessary orders/directions for this purpose,” it is stated in the presentation.



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