Rel Cap, Rel Cap Ventures merger at 5:100

The board of directors of Reliance Capital, which met today, approved a proposal for amalgamation of Reliance Capital Ventures (RCVL) with the company.

According to a release issued by Reliance Capital to the BSE today, the proposed scheme of amalgamation envisages a share exchange ratio of five equity shares of Rs 10 each of the company for 100 shares of Rs 10 each of RCVL (after the allotment of shares pursuant to the demerger of Reliance Industries).

"The share exchange ratio is based on the number of shares of the company held by RCVL, and as recommended by KPMG," the release added.

The shares of the company held by RCVL will be cancelled under the proposed scheme of amalgamation. The fully diluted equity capital of the company will remain at approximately Rs 245 crore, the release added.