Reliance Demerger Demystified

We still get lots of investors who are perplexed with the Reliance Industries Demerger that happened way back in 2006. To make life simpler, (rather by popular demand), we are publishing the details of demerger:

The Reliance shareholder continue to hold the same number of shares they holds today. In addition, he received additional shares of the new demerged entities, as per the demerger ratio.

All RIL shareholders were issued shares of the demerged companies in a 1:1 ratio. So if a shareholder holds 100 Reliance Industries shares he would get:

100 shares of Reliance Communications Ventures Ltd,
100 shares of Reliance Energy Ventures Ltd (REVL),
100 shares of Reliance Capital Ventures Ltd (RECL) and
100 shares of Global Fuel Management Services Ltd.
along with 100 share of Reliance Industries Ltd (Original Holding)

With REVL being amalgamation with Reliance Energy and
RECL with Reliance Capital -- following a board decision -- RIL shareholders will thus receive shares of REL and Reliance Capital based on an earlier approved independent swap ratio:

The ratio approved is 7.5 shares of Reliance Energy for 100 shares of REVL held and
5 shares of Reliance Capital for 100 shares of RECL held.

Reliance Communication Ventures Ltd was later renamed as Reliance Communications Ltd (RCOM) and
Global Fuel Management Ltd was later renamed as Reliance Natural Resources Ltd (RNRL)

In both Rcom and RNRL, Investors continue to hold the original allotment. There has been no swap ratio.

Pictorial representation of Demerger is given below.

For example, if you held 120 shares of Reliance industries before 2006, you are eligible for all these shares after demerger. Shares which were already in demat - no problem - they would have been credited to your DP. But for those shares in physical certificates, you need to find out if you got all these shares : That is a lot of money. So do spend some time and set your records striaght.



Update on 8-Dec-2010:
Many investors across the globe have been hitting this particular article frequently. Some of them did post comment enquiring, how to claim missing split certirificates. But they didnot mentioned their contact details / email etc in the comment. In future if you wish to get further information / clarification, you may send an email to : easyinvest@gmail.com (or) provide your contact details in the comments.

In general, if you wish to claim your missing certificate or get clarification from Reliance Industries (parent company in the stock split), you may communicate with the company officials in the following address:

Reliance Industries Limited
Transfer Agent Address Karvy Computershare Pvt Ltd
Plot No. 17-24, Vittal Rao Nagar
Madhapur, Hyderabad - 500081
Telephone 040-44655070-5099/18004258998
Fax 040-23114087
Email rilinvestor@karvy.com

Registered Address
Reliance Industries Ltd
Address Maker Chamber IV, 3rd Floor,
222, Nariman Point,3rd Floor
Mumbai - 400021
Telephone 022-22785000
Fax 022-22785110
Email: investor_relations@ril.com

Corporate Office Address
Reliance Industries
Secretarial Department
Maker Chambers IV, 3rd Floor
222, Nariman Point
Mumbai - 400021
Telephone 022-22785000/22785303/22785237/44772654/2745
Fax 022-22785110/44779058
Email sudhakar.saraswatula@ril.com

Hope you find these informations useful. :-)