The 2006 Reliance Demerger: The Four Companies Old Reliance Shareholders Were Given Shares In

Families going through a parent’s papers often find certificates for companies they have never heard of in connection with that parent: Reliance Communication Ventures, Reliance Energy Ventures, Reliance Natural Resources. Almost always, the explanation is the same. The parent held Reliance Industries in January 2006.

When the Reliance group was divided between the two brothers, Reliance Industries demerged four businesses into new companies. The record date was 25 January 2006, and each company issued its shares to Reliance shareholders 1:1 — one share of each for every Reliance share held.

So 100 Reliance shares on that date brought 100 shares of each of four companies, by post, to whatever address the folio had at the time. Many of those certificates were filed away and forgotten. Many others never reached anyone at all.

The four companies, and what became of each

Reliance Communication Ventures became Reliance Communications (RCom). RCom has been in insolvency since 2019 — a resolution professional has run its affairs since 28 June 2019 — and its shares were trading below ₹1 in September 2026. They are still listed, but how shareholders fare will depend on how the insolvency ends.

Reliance Energy Ventures was merged into Reliance Energy, which is today Reliance Infrastructure. The ratio approved by the boards in January 2006 was 7.5 Reliance Energy shares for every 100 Reliance Energy Ventures shares.

Reliance Capital Ventures was merged into Reliance Capital at an approved ratio of 5 Reliance Capital shares for every 100. Reliance Capital later went through insolvency. Under the resolution plan approved by the NCLT in February 2024, its existing share capital was cancelled for nil consideration, and the shares were delisted on 13 February 2025. Old Reliance Capital shares no longer carry any value.

Reliance Natural Resources (RNRL) was merged into Reliance Power in 2010 at an approved swap of one Reliance Power share for every four RNRL shares.

The ratios above are as reported when the boards approved each merger. The final schemes, and anything that happened to these companies afterwards, are confirmed by each company’s registrar against the folio — that is the number to rely on.

A worked example

Take 100 Reliance Industries shares held on 25 January 2006, using the approved ratios:

• 100 Reliance Communications shares
• 7.5 Reliance Energy (now Reliance Infrastructure) shares — in schemes like this, fractions are normally consolidated, sold and paid out in cash, so in practice 7 shares and a small cash amount
• 5 Reliance Capital shares, since cancelled
• 25 Reliance Power shares
• and the original 100 Reliance Industries shares, which have grown far more than any of these through later bonuses and the Jio Financial Services demerger. What an old Reliance holding may have become.

Which of them are worth pursuing

Honestly: the Reliance Industries shares themselves are where the value almost always is. Of the demerged companies, Reliance Infrastructure and Reliance Power remain listed and are worth checking. RCom’s shares trade for very little while its insolvency continues. Reliance Capital’s shares have been extinguished.

So if you find a bundle of 2006-era certificates, do not let the smaller companies hold up the main one. Start with the Reliance Industries folio, and treat the others as a check, not a project.

Did the dividends go to the IEPF?

Any of these companies that paid dividends would have transferred unclaimed dividends — and eventually the shares behind them — to the Investor Education and Protection Fund after seven years. The IEPF keeps its records under the company’s current name, so search under Reliance Infrastructure or Reliance Power, not Reliance Energy Ventures or RNRL. How to check whether shares went to the IEPF, and how renamed and merged companies are traced.

Tax when you sell

If you sell any of these shares, the cost of acquisition matters. At the time of the demerger, Reliance apportioned the pre-demerger cost of a Reliance share as 52% to Reliance Industries, 38.7% to Reliance Communication Ventures, 7.3% to Reliance Energy Ventures, 1.3% to Reliance Capital Ventures and 0.7% to Reliance Natural Resources. Your accountant will need those figures. Tax on recovered shares.

Where to start

Each of these companies has its own registrar; the company’s investor page names it. How to find a company’s registrar. Or send us photographs of the certificates and we will tell you which are worth pursuing and in what order. Free unclaimed share search.

Sources: record date as notified to the exchanges (NSE, 27 December 2005); 1:1 ratio (Business Today); merger ratios as approved by the boards (Business Standard, Reliance Energy; Business Standard, RNRL and Reliance Power); cost apportionment (Business Standard); Reliance Capital’s cancelled share capital and delisting (Reliance Capital directors’ report; Business Standard).