RPL’s fractional share entitlement to be consolidated: RIL

RIL said that the fractional entitlements to shareholders of Reliance Petroleum will be consolidated.

Reliance Industries said on Wednesday that the fractional entitlements to shareholders of Reliance Petroleum,arising after the merger of both the Mukesh Ambani group companies,will be consolidated and go directly to a trustee.

“The board of directors of RIL shall consolidate fractional entitlements to which the shareholders of RPL may be entitled on issue and allotment of the equity shares of RIL and allot such fractional entitlement directly to an individual trustee or a corporate trustee,who shall hold such entitlements,” RIL said in a filing to the Bombay Stock Exchange.

Fractional entitlement arises when the shares held by shareholders of a company merging with another firm are unequal to the share swap ratio fixed for the merger.

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Earlier in March,the board of both the companies had approved the all-share merger deal between the two Mukesh Ambani group firms — RIL and RPL.

Under the scheme,the company would be issuing one share in the merged entity for every 16 shares held in RPL — resulting into issuance of 6.92 crore new shares by RIL.

Besides,pursuant to the said merger the promoter shares of RPL would stand cancelled,when the scheme becomes effective.