Two merger deals on two successive Sundays -- each valued over Rs 50,000 crore -- and the Anil Ambani group may not need public offers for Reliance Infratel and Reliance Power.
While Reliance Infratel initial public offer has been pending with the company late last year (it filed the draft prospectus for second time in over two years), a further public float for Reliance Power had been necessitated because of the new listing norms announced by the government last month.
Last Sunday, RCOM announced merger of its infrastructure arm R-Infratel's tower assets with GTL Infra. As per the deal, the new company would not be controlled by any single entity and there have been speculations that RCOM would retain only 26 per cent stake there.
This deal has led to limited chance of R-Infratel IPO being revived now, the market experts feel, adding promoters have already monetised their value to a large extent.
Separately, a recent government directive says it is mandatory for every listed company to have a minimum of 25 per cent public holding with at least five per cent dilution of promoter holding a year, This makes it necessary for Reliance Power to increase its public shareholding by about 10 per cent, from 15.22 per cent at present.
However, RNRL is now being merged with R-Power under an all-share deal, which was approved by the boards of the two companies.
As per the deal, RNRL shareholders for their every four shares would get one share of Reliance Power.
Currently, promoters have little over 55 per cent stake in RNRL (90 crore shares) and close to 85 per cent in R-Power (203 crore shares).
Following the share-swap, promoters of RNRL would get about 22 crore Reliance Power shares -- taking the total number of shares held by promoters in R-Power to 225 crore shares. The total number of shares will also go up to 280 crore, leaving less than 80 per cent stake for promoters.
At the same time, the public shareholders of RNRL for their 73.24 crore shares, would also get 18.3 crore shares of Reliance Power -- which together with the pre-merger public holding of 36.5 crore shares would take the total public holding in R-Power to about 55 crore shares.
Accordingly, the public holding in Reliance Power would increase to over 20 per cent, not far from the required threshold of 25 per cent and the gap could be easily filled with stake sale to some strategic or financial investors, the marketmen pointed out.