REL, Energy Ventures swap ratio at 7.5:100

Reliance Energy today approved the merger of Reliance Energy Ventures Ltd (REVL) in a 7.5:100 swap ratio. This means shareholders of REVL will get 7.5 shares of Reliance Energy for every 100 shares they hold.

The swap ratio is based on the number of shares of the company held by REVL and a valuation process by global management consultancy firm KPMG, according to a statement sent to the Bombay Stock Exchange.

The shares of Reliance Energy held by REVL will be nullified after completion of the demerger process, while its fully diluted equity capital will remain at around Rs 228 crore, the release said.

The proposed scheme of amalgamation is subject to necessary approvals.

On Monday, Reliance Capital Ltd (RCL) directors had approved a proposal for amalgamation of RCVL with the company.

This scheme of amalgamation envisages a share exchange ratio of five equity shares of Rs 10 each of the company for every 100 equity shares of the face value of Rs 10 each of RCVL.

The splitting of the group's assets between the two brothers will be effected as on January 18, 2005. A special trading session will be held on the day to help investors ascertain their value after the spin-off.

Anil Ambani will gain control of Reliance Energy Ltd, Reliance Capital and the unlisted telecom businesses, while his elder sibling Mukesh Ambani is slated to get control of flagship business, Reliance Industries, which includes oil and gas exploration, refining and petrochemicals.