Mukesh now controls 50 per cent plus in Reliance | india | Hindustan Times
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Mukesh now controls 50 per cent plus in Reliance

india Updated: Jan 16, 2007 20:48 IST
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Around a year after the demerged Reliance Industries scrip debuted on the Indian bourses, the promoters of the company have announced through a declaration to the stock exchanges that they now hold more than 50 per cent in the company.

The process needed mopping up around five per cent of the company's equity over a period of little more than a year. At today's price it would be worth Rs 9,300 crore. However, since the acquisition happened over a long period it must have cost a lot less.

The stake in control of Mukesh Ambani at the time of the split was estimated at 38 per cent. Now he controls 43.11 per cent. He controls another 7.51 per cent through the Petroleum Trust and the total promoters' holding is at 50.62 per cent. It was at 49.92 per cent at the end of September 30, 2006.

While the Mukesh Ambani camp has invested in the company, the scrip has also richly rewarded the promoters as well as other shareholders of the company.

The demerged Reliance scrip had closed at Rs 713.93 at a special trading session on January 18, almost exactly a year back. Since then the scrip has climbed up to Rs 1,346.95 at a close on Tuesday. Mukesh Ambani's 43 per cent direct stake in the company alone is worth more than Rs 80,000 crore today.

The promoter's stake in Reliance had been at 46.75 per cent for a long time until the split. Thereafter the holdings of Mukesh's brother Anil Ambani and his family and companies controlled by him are not shown among the promoters. The stake has now been consolidated under 48 entities unlike the more than 138 companies and individuals who used to own the Reliance promoter stakes in the past.

After Anil Ambani's exit, the promoter's holding went down by around two-three per cent. Even before the split was official the Mukesh Ambani camp had started untangling the maze of cross holdings in the company and also slowly increasing the stake.

Currently, the trust is still the largest shareholder with promoter-group companies like Eklavya Mercantile, Bhumika Trading and Ekansha Enterprises all holding a little more than four per cent each.

Reliance officials refused to comment on the issue.

Email Suman Layak: suman .layak@hindustantimes.com

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