Reliance Industries Ltd. said its retail unit will buy back shares trading in the gray market and given to employees as stock options as the oil-to-telecom conglomerate mulls listing the holding company of Reliance Retail Ltd.

The company controlled by billionaire Mukesh Ambani approved a proposal to reduce equity share capital to the extent held by shareholders other than its founders and holding company Reliance Retail Ventures Ltd., it said in an exchange filing on Friday.

“Upon such reduction, these shares held by such shareholders shall stand cancelled and extinguished.,” the filing said. “A consideration of 1,362 rupees ($16.46) per share, determined on the basis of valuation obtained from two reputed independent registered valuers, shall be paid towards the capital reduction.”

Reliance Retail is paying a premium over the average price of 866 rupees apiece determined by valuers Ernst & Young Merchant Banking Services LLP and BDO Valuation Advisory LLP to woo shareholders. Reliance Retail’s equity shares are not listed on any stock exchange and there is no recognized market available to shareholders to buy and sell the stock held by them, it said.

Reliance Retail operates 18,040 stores, runs supermarkets, India’s largest consumer electronics chain, a cash-and-carry wholesaler, fast fashion outlets and an online grocery store called JioMart.

Reliance Retail Ventures holds 99.91% of the issued, subscribed and paid-up equity share capital of Reliance Retail.

Ambani said in 2019 that Reliance will start the listing process for its telecom arm and retail unit in five years.