How the demerger formula will work

RIL shareholders will become shareholders of each of the 4 special purpose vehicles (SPVs) as follows:

Reliance Capital Ventures Ltd., which will hold RIL's present shareholding in Reliance Capital Ltd.

Reliance Energy Ventures Ltd., which will hold RIL's present shareholding in Reliance Energy Ltd.

Global Fuel Management Services Ltd, which will hold Gas Supply contracts from RIL.

Reliance Communication Ventures Ltd, which will hold RIL's present shareholding in Reliance Communications Infrastructure Ltd, Reliance Infocomm Ltd, and Reliance Telecom Ltd.

RIL shareholders will receive 1 share of each of the above SPVs, for every 1 share held in RIL.

The details in respect of each of the SPVs is as below:

Reliance Capital Ventures
Reliance Capital Ventures Ltd. will have an equity share capital of 122.3 crore shares of the face value of Rs. 10 each, aggregating Rs 1,223 crore ($ 281 million).

The derived interest of over 23 lakh Reliance shareholders, in the RCL shares to be held by the SPV, will be approximately 5 shares of RCL for every 100 shares held in the SPV.

Reliance Energy Ventures
Reliance Energy Ventures Ltd will have an equity share capital of 122.3 crore shares of the face value of Rs. 10 each, aggregating Rs 1,223 crore ($281 million).

The derived interest of over 23 lakh Reliance shareholders, in the REL shares to be held by the SPV, will be approximately 7 shares of REL for every 100 shares held in the SPV.

Global Fuel Management Services Ltd (GFMS)
Over 23 lakh Reliance shareholders will receive 100 shares of GFMS for every 100 shares held in RIL.

GFMS will be the holding company, with contracts for supply of natural gas from RIL, which are proposed to be utilised for Reliance Energy Group's power generation projects mainly in Uttar Pradesh and Maharashtra, and also other power projects in India.

GFMS will have an equity share capital of 122.3 crore shares of the face value of Rs 5 each, aggregating Rs 611 crore ($ 140 million).

This company will be listed in due course, providing liquidity to over 23 lakh shareholders.

Reliance Communications Ventures Ltd.
Over 23 lakh Reliance shareholders will receive 100 shares of Reliance Communications Ventures Ltd (RCVL) for every 100 shares held in RIL.

RCVL will be the holding company for the Infocomm Group of companies, including amongst others, Reliance Infocomm Ltd (RIC), Reliance Communication Infrastructure Ltd (RCIL), Reliance Telecom Ltd (RTL) and Flag Telecom.

RCVL will have an equity share capital of 122.3 crore shares of the face value of Rs. 5 each, aggregating Rs. 611 crore ($ 140 million).

RCVL will be listed in due course, providing liquidity to over 23 lakh shareholders.

RCVL will hold a 65.9% stake directly and indirectly in RIC, and 35.2% in RTL.

ADA Enterprises will have 4 listed companies - each with a shareholder base of over 23 lakh.

Based on the above, the derived interest of RIL shareholders in each of the entities will be:

approx. 5 shares of RCL for every 100 shares held in RIL

approx. 7 shares of

REL for every 100 shares held in RIL

100 shares of GFMS for every 100 shares held in RIL

100 shares of RCVL for every 100 shares held in RIL.