The Telegraph
Since 1st March, 1999
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Reliance tightens its grip on BSES

Mumbai, Feb. 15: Reliance Industries, has tightened its grip over BSES with Anil D Ambani declaring today that his group has increased its stake in the power utility to 58 per cent from 44.12 per cent.

It is believed that Unit Trust of India (UTI), the leading mutual fund major, has sold 8 per cent of its holding in BSES to Reliance Industries.

While the industry considers Unit Trustís move as pragmatic, others have questioned it saying that the united front of the financial institutions is now showing cracks.

In UTIís defence, it can be said the power utility will have a long gestation period as it lines up huge investments for the future. ďIt was better to sell out now, than wait for the investments to pay off,Ē some argued.

In his new role as the chairman of BSES, Anil Ambani exuded confidence as he addressed BSES shareholders with aplomb as his mother Kokilaben and wife Tina Ambani watched from the audience his debut performance.

Ambaniís declaration that the group has secured 58 per cent stake signifies that part of the stake has definitely been acquired from financial institutions.

At the commencement of the open offer, RILís stake was pegged at 44.12 per cent. RILís second open offer for BSES, under the provisions of the Sebi Takeover Code closed today.

Meanwhile at an extraordinary general meeting (EGM) held today, the BSES shareholders approved the appointment of Anil D. Ambani, vice-chairman and managing director of Reliance Industries Limited (RIL), as the chairman of BSES.

The shareholders of BSES also ratified the appointments of S. C. Gupta as director (Operations) and J. P. Chalasani as director (business development).

The resolutions proposed at the meeting, including the changes in the composition of the board of directors and the amendments to the memorandum and articles of association of the company, were passed unanimously.

Addressing the shareholders, Ambani expressed confidence that with the ďfocus on consistent operational performance, financial conservatism and discipline, and healthy growth in cash flows, BSES will enjoy sustained growth in the years to come, thereby leading to maximisation of overall shareholder value.Ē

Ambani also announced that, as an investor-friendly initiative, BSES has set up an odd lot shares trust. The scheme is entirely optional and is for the convenience of small shareholders, to ensure that they receive the full market value for their odd lot shares.

The Reliance group, is the country's largest business house with total revenues of Rs. 67,500 crore, cash profit of over Rs. 7,900 crore and net profit of over Rs. 3,750 crore.

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