Mumbai, April 25: Shareholders of Reliance Capital (RCL) today approved the merger of Reliance Capital Ventures (RCVL) with the company.

The shareholders’ affirmation came through at an extra-ordinary general meeting of RCL held today in Jamnagar where the company has its registered office. A statement released by RCL after the meeting said the approval was unanimous.

The Reliance-Anil Dhirubhai Ambani group will seek approval from the shareholders of RCVL in Mumbai tomorrow.

Under the terms of the settlement reached between the two Ambani brothers, four entities were demerged from Reliance based on the area of operations ? telecommunications, coal-based energy, financial services and gas-based energy.

RCVL is the holding company for Reliance’s shareholding in RCL.

The amalgamation envisages an exchange ratio of five shares of RCL for every 100 of RCVL. The ratio is based on the recommendation made by leading international consultants KPMG.

Under the scheme of amalgamation, the shares of RCL that are held by RCVL will be cancelled and the fully diluted equity capital of RCL will remain at Rs 245 crore.

Anil Ambani has justified the amalgamation on the ground that it would directly enhance the value for 23 lakh RIL shareholders who will now be direct shareholders of RCL. It will also eliminate dual listing of RCL and RCVL on the bourses.

Moreover, it will result in increased liquidity for all Reliance Capital shareholders and yield wider domestic and international shareholder base for RCL.

On the BSE today, shares of RCVL ended at Rs 25.35 after opening at Rs 26.25 and rising to an intra-day high of Rs 26.40. RCL closed at Rs 534.25 after opening at Rs 550.