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Anil Ambani gung-ho over RCoVL listing on BSE

Enthused by the successful listing of Reliance Communication Ventures, he made a slew of investment declarations, including Rs 15,500 crore for telecom.

india Updated: Mar 06, 2006 19:53 IST

Enthused by the successful listing of Reliance Communication Ventures, which took his group's market capitalisation to Rs 86,500 crore, Anil Ambani on Monday made a slew of investment announcements.

This included infusing over Rs 15,500 crore in telecom business in three years.

Reliance Communication Ventures on Monday got listed at the Mumbai stock exchange opening strongly at Rs 290 a share.

Claiming that Reliance-ADAG had emerged among the top three business entities in the country on "all major parameters", he told reporters that all the outstanding issues including deviations in agreements had been taken up with elder brother Mukesh Ambani's group and the same were expected to be resolved by this month end.

Giving an outline of his business strategy, including that for Reliance Capital and Reliance Energy, Anil said there would be no cross holdings in the group companies as he preferred "simple and transparent" holding structure.

While the process is on for merger of Reliance Capital Venture with the Reliance Capital Ltd, all the telecom holdings would come under Reliance Communication Ventures, he said.

Replying to a query, Anil said a number of global players including Microsoft wanted to partner with the group in telecom business and added that even before listing RCoVL had sought aproval from shareholders to hike Foreign investment up to 74 per cent to have global investors on board.

He said: "We would be keen to hike FDI... A mechanism would be in place by month end."

Anil put the networth of the Reliance ADAG group at Rs 26,500 crore and the net asset value of the group at over Rs 31,000 crore. Total operating profits, on an annualised basis from the current trends, would come to Rs 5,000 crore for the group, he said.

Giving details of investments, Anil said the group would pump in Rs 5,000 crore each over the next three years. Of this, Rs 2,500 crore would be in broadband, Rs 1,500 crore in wireless and Rs 1,000 crore in global businesses.

Anil rings BSE bell

Reliance Communication Ventures on Monday got listed at the Mumbai stock exchange opening strongly at Rs 290 a share.

The price was discovered after the RCOVL chief Anil Ambani rang the ceremonial bell at the Bombay stock exchange.

Immediately after opening, RCOVL shares spurted on a good demand to touch Rs 309. At NSE, the scrip opened at Rs 298 and touched a high of Rs 307 a share within minutes.

In less than five minutes of opening over one crore shares of the company were traded at the two exchanges, demonstrating wider acceptability of the company and ADAG whose market capitalisation before the listing was pegged at Rs 53,000 crore.

The opening of RCOVL was with a market capitalisation of Rs 36,450 crore.

Just before the trading started, Anil recalled the family history including how his father Dhirubhai Ambani had launched the Reliance's maiden issue in 1978 for over Rs 800 crore a day after an issue of HLL.

Accompanied by his mother Kokilaben and wife Tina, Anil made an emotional address at the BSE.

"My mother had been the force behind the success of my father, some even said hidden force. Now she is the force behind the success of myself and my elder brother Mukesh in creating two independent Reliance groups. We will gain strentgh to strength and create world-class assets for prosperity of our shareholders."

First Published: Mar 06, 2006 19:53 IST