RInfra shareholders approve demerger of six divisions
Shareholders of Reliance Infrastructure Ltd (RInfra) on Tuesday approved the demerger of six of its divisions into wholly-owned subsidiaries of the company.business Updated: Jun 09, 2009 22:02 IST
Shareholders of Reliance Infrastructure Ltd (RInfra) on Tuesday approved the demerger of six of its divisions into wholly-owned subsidiaries of the company.
The meeting of shareholders, convened according to a Bombay High Court order, approved the demerger of Dahanu Thermal Power Station into Reliance Energy Generation Ltd, Goa and Samalkot Power Stations into Reliance Goa and Samalkot Power Ltd and Power Transmission Division into Reliance Power Transmission Ltd.
Other three divisions of Reliance Infrastructure —Power Distribution Division, Toll Roads Division and Real Estate Division were demerged into Reliance Energy Ltd, Reliance InfraVentrues Ltd and Reliance Property Developers Ltd, respectively.
“The demerger would benefit the stakeholders of respective companies,” the company said in a release issued on Tuesday.
More focused management, simplified and transparent business structure and alignment of interest of various stakeholders are touted as some of the benefits of the demerger.
Shares of Reliance Infrastructure closed at Rs 1,149.30, up 2.44 per cent on the Bombay Stock Exchange.