‘Non-promoters offered fair value’: NCLAT junks plea against Reliance Retail share capital cut

In a relief to Reliance Retail Ltd (RRL), the National Company Law Appellate Tribunal (NCLAT) has dismissed a petition challenging the company’s 2023 decision to reduce its equity share capital, ruling that non-promoter shareholders were offered a fair value for their shares.

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RRL had resolved to reduce and cancel 78,65,423 equity shares held by minority shareholders, excluding promoters and the holding company.

‘The board, through a special resolution on July 4, 2023, approved the buyback at Rs 1,380 per share, representing only 0.09 per cent of total shareholding.

‘The consideration offered was a 56 per cent premium over the fair value determined by two independent valuers. The proposal was cleared with 99.99 per cent shareholder approval.