‘Lost 60% overnight’, investors vent anger after Reliance Retail approves share capital reduction

livemint.com:

Reliance Retail, on Friday, announced the reduction of the equity share capital to the extent held by shareholders other than its promoters holding company. However, the move didn't go well with share market investors, who are venting out their anger and disappointment against the move on social media. "A consideration of ₹1,362 per share, determined on the basis of valuation obtained from two reputed independent registered valuers, shall be paid towards the capital reduction," said an exchange filing by its parent firm Reliance Industries on Friday.

Soon after the decision, Twitterati expressed their disappointment with the move. Many users claimed the company of “looting the retail investors". "Okay, so my unlisted Reliance Retail shares just lost 60% overnight, new fear unlocked.

Is it actually possible to "cancel" can't we decide not to take part," tweeted a user named @AMalayaliTrader and describes himself as a trader and investor. “Investing in Unlisted Market without Proper Analysis is too Risky, Once Again Proved Reliance Retail taking Shares back at 1,362 while Unlisted Price was Almost Double from it," said another Twitter user. Previously Those who bought Paytm, Policy Bazaar etc in Unlisted also suffered loss"This is ridiculous #Reliance #relianceretail The torch bearers of investing are looting retail.

Till today, share were quoting between 22-2500," said another user. "Reliance Retails unlisted shares were trading @ 3200 and now the company is paying only 1,350. Whoever buy in the hope of retail and Jio IPO , forget that they are dealing with Ambani.

Don't forget RPL and RNRL story," said another user. Decision was approved by the board of Reliance Retail on July 4. The company said that the capital