Anil Ambani-promoted Reliance Capital to be delisted from exchanges
Upstox
2 min read • Updated: February 28, 2024, 2:02 PM
Summary
As per the approval order of the NCLT, the net worth of RCL stood at ₹10,431.3 crore as on March 31, 2023, while after the CIRP, the net worth of RCL will be available post the implementation of the Resolution Plan.
- RELCAPITAL--
Reliance Capital Ltd (RCL) announced on Wednesday that the National Company Law Tribunal (NCLT) in Mumbai has approved the resolution plan submitted by IndusInd International Holdings Ltd (IIHL) for the company.
IndusInd International Holdings, a subsidiary of the Hinduja Group, had submitted a resolution plan to the NCLT concerning the corporate insolvency resolution process of Reliance Capital under Section 31 of the Insolvency and Bankruptcy Code, 2016.
In a filing to the stock exchanges, the Anil Ambani-promoted company said that the NCLT approved the proposal of IIHL on February 27 regarding the corporate insolvency resolution process of RCL under the IBC.
As per the approval order of the NCLT, the net worth of RCL stood at ₹10,431.3 crore as of March 31, 2023, while after the CIRP, the net worth of RCL will be available post the implementation of the Resolution Plan.
The total assets of RCL remained at ₹12,142 crore as of the financial year 2022-23. Under the Approved Resolution Plan, the Corporate Debtor, which is RCL, is proposed to be acquired on a going concern basis, and the assets that continue on the books of RCL shall be available after the implementation of the Approved Resolution Plan.
Reliance Capital has also stated that as per the order by NCLT and the Securities and Exchange Board of India (SEBI), the company's equity shares will be delisted from the domestic stock exchanges. The liquidation value for the company's shareholders is determined to be nil, which means they will not receive any payment.
Further, the NCLT Approval Order noted that IIHL and its nominees will become the sole shareholders of RCL, while the stock exchanges will take all the necessary actions to delist the equity shares of RCL.
"The entire existing share capital of RCL is proposed to be cancelled and extinguished for NIL consideration by virtue of the NCLT Approval Order such that IIHL and the Implementing Entity, and its nominees, are the only shareholders of the Corporate Debtor," the exchange filing stated.