Reliance Industries Limited (RIL) has proposed a share swap deal that will allow shareholders of unlisted Reliance Retail to exchange their unlisted shares for that of RIL.
According to RIL's website, the proposal is for Reliance Retail shareholders to receive one RIL share for 4 shares held in Reliance Retail. It will be applicable to Reliance Retail employees, who were allotted shares, or restricted stock units, under various employee stock option plans.
Reliance Retail, a subsidiary of Reliance Retail Ventures Limited and an indirect subsidiary of RIL is not listed on any stock exchange. The proposed scheme will not alter the capital structure of any of the companies.
The swap ratio values the retail business at Rs 2.5 lakh crore.
"The company had implemented two schemes namely Reliance Retail Employees' Restricted Stock Unit Plan 2006 and 2007 under which Restricted Stock Units ("RSUs") have been allotted to eligible employees. On exercise of the RSUs by some of the employees, equity shares have been allotted to them," RIL said.
"The company has been receiving requests from the employees holding equity shares for providing them options for exit and liquidity, including by way of listing of the equity shares," it added.
The share-swap scheme will enhance liquidity for these employees as they will be owning shares that are being traded on stock exchanges.