Saturday, June 6, 2020

Right Issue of Reliance Ind and Issues faced by Small Share Holders

Reliance Industries was incorporated as a public limited company under the name Mynylon Ltd. in 1973 and 1975 on 28th June this company was converted into a public limited company. On 11th February 1966, a company by name of Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat. On 1st July, Reliance Textile Industries Ltd was amalgamated with Mynylon Ltd. In 1977 with effect from 11th March 1st, the name of Mynylon Ltd was changed to Reliance Textiles Industries Ltd. On November Dhirajlal H Ambani and Natvarlal H Ambani along with some other existing shareholders offered for sale at par to the public. 28,20,000 equity shares of the Company in order to get the shares of the company listed on the Stock Exchange at Mumbai.
From then Reliance merged lots of companies either by takeover or merger of its own subsidiaries. We take you that journey of mergers and share swap ratios. 

In 1979 Sidhpur Mills Co. Ltd which has an installed capacity of 38,368 spindles and 490 looms was amalgamated with the company.  In terms of the scheme of amalgamation, the company was to issue and allot for every one equity share of Rs. 100 each of Sidhpur, 2 equity shares of Rs.10 each, and one bond of Rs.80 of the company. The Company allotted a total of 1,12,000 No. of equity shares of Rs
 10 each and 35,000 - 11% bonds of Rs 80 each to the shareholders of Sidhpur Mills.
In 1992 with effect from 1st March, Reliance Petrochemicals Ltd. was merged with the Co. As per the scheme of amalgamation, 1 equity shares of RIL was issued against 10 equity shares held in Reliance Petro Chemicals Ltd.
In 1995  Reliance Polypropylene Ltd. (RPPL) and Reliance Polyethylene Ltd. (RPEL) were merged in the ratio of 30 equity shares of Rs 10 each for every 100 equity shares of Rs 10 each
 held in RPPL and 25 equity shares of Rs. 10 each of the Company for every 100 equity shares of Rs 10 each held in RPPL.
In March 2002, the Board approved the proposal for amalgamation of Reliance Petroleum Limited (RPL) with the Company. The proposed Scheme of Amalgamation provides that the amalgamation will take effect from the Appointed Date i.e. April 1, 2001. One equity share of the company will be allotted for every eleven equity shares of RPL held.
In April 2007, Indian Petrochemicals Ltd. (IPCL) was merged in the ratio of 1 equity shares of Rs 10 each for every 5 equity shares of Rs 10 each held in IPCL.
 This is how companies got merged with Reliance and due to that lots of shareholders are in the confusion they were shareholders of these companies and by virtue of that shareholding they became shareholders of Reliance. It didn't happen only in case of Reliance there are lots of companies like Vedanta which merged the identity of lots of companies like Sesa Goa, Sesa Sterlite, Madras Aluminium Limited( MALCO), Sterlite Limited, etc., Bharat Aluminium Ltd (BALCO) and Crain India Ltd. There are a lot of companies that change there name or demerged and that created lot of lost wealth for the investors.
In this current right issue of Reliance, a lot of people couldn't apply the right issue because of a few issues. The first timing was not right in this epidemic of Carona people were not informed or couldn't be informed by physical communication, payment procedures were very difficult for old and not very tech-savvy investors. The company officials and registrar and transfer agents (RTA's) were not available to assist them. As per our estimate lay investors lost around 500 crores.  There are lots of investors who didn't get the right forms because they have not aware that they are shareholders of Reliance because of these mergers and the company has their old address in its records. We at Supergrowth track that and not only find your lost wealth but handles the entire lengthy process of getting back too, so you not only get your money in the bank and save your feet from wear & tear and most important time. If you think that you are a victim of this issue then fill this form or contact us any modes of communication given below. 

Wealth Discovery & Reclaiming Services Firm 

133 'A' Mittal Court, 
Nariman Point, 
Mumbai 400021
Tel. +91 22 3594 2808
Cell No. +91 98211 59921

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