RPower concludes allotment of shares to RNRL shareholders | business | Hindustan Times
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RPower concludes allotment of shares to RNRL shareholders

Anil Ambani-led Reliance Power today said it has concluded the allotment of equity shares to shareholders of group company Reliance Natural Resources Ltd (RNRL), as per their merger agreement.

business Updated: Nov 14, 2010 16:40 IST

Anil Ambani-led Reliance Power today said it has concluded the allotment of equity shares to shareholders of group company Reliance Natural Resources Ltd (RNRL), as per their merger agreement.

"RPower allotted equity shares to shareholders of RNRL in accordance with the composite scheme of arrangement," the company said in a statement.

According to the scheme of arrangement, RPower has alloted one equity share of Rs 10 face value in exchange for four RNRL equity shares of Rs 5 face value each.

The move comes after Bombay High Court last month approved the merger of both entities.

The share exchange ratio was based on the recommendations of leading international consulting firm, KPMG.

RNRL has become a wholly owned subsidiary of RPower and its shares ceased to be tradable on the stock markets with effect from November 9, 2010.

The merger would result in RPower becoming the world's largest shareholder family, with around 50 lakh members, compared to about 35 lakh at present.

In addition, RNRL's gas supply agreement with Reliance Industries will accelerate the implementation of RPower's plans for setting up over 8,000 MW of gas-based power generation capacity.

Furthermore, the power major would be able to utilise gas from RNRL's coal bed methane projects.

RNRL shareholders would also benefit from the substantial coal reserves and growth prospects of RPower's diversified generation portfolio of 37,000 MW.