Scheme of Demerger
The year 2005-06 was a landmark year in the
history of RIL. It marked a new strategic decision
to unlock value for its shareholders by reorganizing
RIL’s business through a process of demerger.
In this process, RIL’s investments in
power generation and distribution, financial
services and telecommunication services were
demerged in to 4 separate entities.
RIL’s shareholders received shares in
the new entities in the same proportion of their
equity holdings in RIL.
The successful implementation of the largest
demerger process in Indian corporate history
has demonstrated RIL’s ability to seed
new businesses, gain leadership in each of these
businesses which are large enough to be independent
and thereby create value for RIL’s shareholders.