In a move aimed at streamlining their holding in a tax-efficient way, promoters of Reliance Industries (RIL) have rejigged their stake through a transfer of shares amounting to over 34 per cent stake among themselves.
While the company or promoters have not disclosed the reason behind the rejig of shareholding, the sources said it was aimed at streamlining the holding of various promoter group entities in a tax-friendly manner.
The restructuring is limited to transfer of shares among promoters themselves and there is no dilution or increase in their overall holding.
The move has been reported by the country's most valued firm, led by billionaire industrialist Mukesh Ambani, through a series of regulatory disclosures filed with the stock exchanges over the past few days.
As per these disclosures, a total of 61 promoter group entities together acquired over 105.9 crore shares through transfer of shares from a total of 32 promoter group entities on August 11.
Indicating that the move could be aimed at saving taxes, the 61 'acquirer' entities include 27 LLPs (limited liability partners). LLPs are a new structure for corporate entities in the country and are considered to provide better tax efficiency and they do not need to pay certain taxes like dividend distribution tax.
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The transferred shares account for 34.17 per cent stake in RIL, the country's most valued firm with a market cap of over Rs 3,16,600 crore.
Prior to this transfer, these 32 entities together held 39.17 per cent stake. Now, these 32 'transferor' entities hold 5 per cent stake, while the remaining 34.17 per cent have been transferred to the 61 'acquirer' entities.
At the end of last quarter, or on June 30, 2010, total promoter holding in RIL stood at 44.76 per cent. At that time, the company had a total of 74 promoter group entities.
Neither the 'acquirer' nor the 'transferor' entities include promoters like the Petroleum Trust (which owns 3.68 per cent stake), Mukesh Ambani and his family members.
RIL shares today fell 0.42 per cent to close at Rs 968.10 a piece at the Bombay Stock Exchange.