Shareholders accept Anil Ambani's gift of R-Power shares

Monday, April 21, 2008

Shareholders accept Anil Ambani's gift of R-Power shares

Reliance Energy said on Thursday that its shareholders have accepted a "gift" of Reliance Power shares, worth a current value of over half a billion dollars, from the group's billionaire chairman Anil Ambani.

Announcing the results of a postal ballot, the company said that the shareholders have also approved waiving off its entitlement to Reliance Power's bonus shares issue, a name change to Reliance Infrastructure Ltd and a stock buy-back offer worth up to Rs 2,000 crore.

The shareholders have approved the proposals by a large majority to waive the Company's entitlement to receive bonus shares proposed by Reliance Power and to "accept gift of 2.57 per cent shares of Reliance Power from Anil D Ambani."

REL-promoted Reliance Power was listed on the bourses in February after the country's biggest ever IPO, where it raised Rs 11,560 crore and after which REL's holding stood at 45 per cent in the company.

However, following a disastrous debut that saw the shares of Reliance Power closing below the issue price of Rs 450 on the very first day of trading, Anil Ambani announced a 5:3 bonus issue for non-promoter shareholders.

In its bid to protect REL from suffering shareholding dilution in Reliance Power due to leaving its right to bonus shares, AAA Project Ventures Pvt Ltd, fully controlled by Anil Ambani and a group promoter, had offered to contribute "by way of gift" 2.57 per cent of its post-bonus issue Reliance Power shareholding, or 6.15 crore shares, to Reliance Energy.

"The shareholders of Reliance Energy have also overwhelmingly approved the proposal to accept the aforesaid gift of shares by AAA Project Ventures Private Limited," REL said in a statement.

Based on the current market price of Rs 383.55 a piece, these shares are worth about Rs 2,359 crore.

REL said that the shareholders have also approved buy-back of shares of up to 25 per cent of the paid capital and free reserves and aggregating up to Rs 2,000 crore.

Reliance Energy has already commenced buy-back of shares up to an amount not exceeding 10 per cent of the paid up equity share capital and free reserves, aggregating Rs 800.06 crore. Pursuant to the approval, the company has so far bought back 20,38,551 equity shares aggregating Rs 250.75 crore.

Reliance Anil Dhirubhai Ambani Group currently has a market capitalisation of over Rs 2,78,000 crore, net worth in excess of Rs 40,000 crore, cash flow of Rs 9,000 crore, net profit of Rs 5,000 crore and zero net debt.

Earlier last month, Anil Ambani was ranked as the second richest in India after his elder brother Mukesh with a net worth of 42 billion dollars by the US business magazine Forbes.

» Reliance Power Bonus Issue Date

» Reliance Power shareholders approve bonus issue

ATOzTOA : Latest Headlines


Post a Comment