Over 12% of RIL stake changes hands as company witnesses three block deals
On 2 March, RIL said its promoter group entities have proposed to re-structure their shareholding by an inter-se transfer of shares
Mumbai: Reliance Industries Ltd (RIL) on Thursday witnessed three block deals, in which around 396.10 million shares or 12.2% stake of the company changed hands, according to a Bloomberg report.
However, details of buyers and sellers were not known.
The RIL shares closed down 0.35% at Rs1,287.35, while India’s benchmark index,Sensex, rose 0.09% to 28,929 points.
On 2 March, RIL announced in a notice to the stock exchanges that its promoter group entities have proposed to re-structure their shareholding by an inter-se transfer of shares.
“The proposed inter se transfers will not result in any change in promoter group shareholding in RIL,” Mint quoted an RIL spokesperson as saying.
The restructuring will not change the promoter stake (currently 46.48%) in India’s largest company by revenue; around 1.2 billion shares held by 15 entities are being transferred to eight others.
Eight group entities of the founders will acquire the shares. These entities include Devarshi Commercials LLP, Karuna Commercials LLP, Tattvam Enterprises LLP, Srichakra Commercials LLP, Svar Enterprises LLP, Vasuprada Enterprises LLP, Shreeji Comtrade LLP and Shrikrishna Tradecome LLP.
The acquisition price will not be higher by more than 25% of Rs1,100.78 (based on trades on the NSE), notice to the BSE said.
According to a Mint report, promoters typically undertake such transactions when they want to save on tax or redistribute wealth among family members for succession planning.
“With GAAR kicking in from next month, transfer of shares will be taxable and that definitely is a reason why RIL may be doing this before 31 March,” the Mint report added.