Reliance Retail said on Friday that the equity share capital will be reduced to the degree that it was owned by shareholders other than the holding company of its promoters. Sharemarket investors, however, were not pleased with the action and are using social media to express their resentment and displeasure.
In a Friday exchange statement, Reliance Retail’s parent company Reliance Industries stated that “a consideration of Rs. 1,362 per share, calculated on the basis of valuation obtained from two reputed independent registered valuers, would be paid towards the capital reduction.”
The Twitterati expressed their displeasure with the choice shortly after it was made. The corporation was accused of “looting the retail investors” by several users.
Okay, so my unlisted Reliance Retail shares dropped by 60% overnight, igniting fresh worry. “Can’t we decide not to participate? Is it actually possible to “cancel”?” tweeted a person going by the handle @AMalayaliTrader, who identifies as a trader and investor.
Reliance Retail once again demonstrated the riskiness of investing in unlisted markets by buying back shares at a price of 1,362 while the unlisted price was over double that amount, another Twitter user claimed.
Previously People that purchased Paytm, Policy Bazaar, etc. in Unlisted also lost money. This is absurd, Reliance, Reliance Retail. Retail is being pillaged by the investment torchbearers. Share prices were between 22-2500 till today, according to another user.
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“Unlisted Reliance Retail shares were trading at 3200, but the business is currently only paying 1,350. Forget that you are doing business with Ambani if you buy in the hopes of retail and the Jio IPO. Remember the RPL and RNRL tale, a different user advised.
The Reliance Retail Board of Directors approved the choice on July 4. According to the corporation, the capital reduction strategy would effectively restructure the company and turn Reliance Retail into a 100 percent subsidiary of Reliance Retail Ventures Limited (RRVL).
Reliance Retail’s promoter and holding company, RRVL, owns 99.91% of the business’s share capital.
Reliance Retail has disclosed a decrease in shares. Investors vented their rage on social media shortly after hearing the news.
