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RIL pens demerger buyout cost

Our Markets Bureau  |  Mumbai 

(RIL) today issued a guidance on the cost of acquisition of Reliance shares for for the purpose of by shareholders.
According to the guidance, the cost of the company has been apportioned at (52 per cent), (38.7 per cent), (7.3 per cent), (1.3 per cent) and (0.7 per cent).
According to the scheme of arrangement, the assets and liabilities of the demerged entities have been transferred to the resulting at book value as on August 31, 2005.
The method for calculation of acquisition cost and the date of acquisition of resulting is done based on the provisions of the Income Tax Act, 1961, and is based on experts' opinion.
The record date for the issue of shares has been fixed on January 25. Reliance shares will be traded on ex-benefit basis from January 18 and the price discovery will happen in a special trading session organised by the stocks exchanges that morning before the regular market opens. ended weak today at Rs 873, down 1.36 per cent.
The company further said, "It has been advised as per Section 47 of the Income Tax Act, 1961, the issue of shares by the resulting company, in a scheme of demerger to the shareholders of the demerged company in consideration of demerger of the undertaking, will not be regarded as transfer.
Accordingly, date of acquisition of shares of the resulting will be deemed to be the date when the equity shares of the company were acquired."
THE SCHEME
Pre-demerger acquisition cost of the company has been apportioned at Reliance Industries (52 %), (38.7%), (7.3 %), (1.3 %) and (0.7 %)
ASSETS and liabilities of the demerged entities have been transferred to the resulting companies at book value as on August 31, 2005

First Published: Tue, January 17 2006. 00:00 IST
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