On the cards

Mumbai, April 14: Reliance Natural Resources Ltd (RNRL), the Anil Ambani group company, is planning to enter new areas of operations that include gas distribution.

RNRL director SL Rao told shareholders at the company's extraordinary general meeting (EGM) here today that the company was looking at the two cities of Mumbai and Delhi as part of this programme. The EGM was held to obtain shareholders permission for a preferential issue to the Anil Dhirubhai Ambani Group.

In March, the board of RNRL had approved a preferential offer of equity shares or equity related securities to the group or long term financial investors to strengthen the company's capital base and financial position. It is learnt that Anil Ambani, being an interested party, did not participate in the proceedings.

RNRL, which has differences with Reliance Industries Ltd (RIL) on a gas supply agreement, will be engaged in buying gas from RIL and distributing it to Reliance Energy Ltd for its Patalganga and Dadri power projects. But a lot of questions have emerged in the recent past about the company's business model.

After the successful listing of Reliance Communication Ventures Ltd (RCoVL), Anil Ambani told reporters that the company was exploring the option of entering other business that include gas distribution and also coal mining.

Sources do not rule out the company of setting up the necessary infrastructure such as pipelines to transport gas to Reliance Energy's various projects.

The EGM sought shareholders permission to issue shares or other securities to Anadha Enterprises Pvt Ltd (AEPL), a company owned by Anil Ambani and his associates. The securities issued under the preferential issue to AEPL will be locked in for a period of three years from the date of allotment.

Under the preferential issue, AEPL will subscribe up to 41 crore equity shares/warrants. It will result in raising the promoters holding to 54.76 per cent from 39.59 per cent. Of this, EPL's stake will increase to 41.66 per cent from 22.10 per cent before the issue. This preferential offer will be made at a minimum price of Rs 25.65. On completion of the offer, RNRL's net worth will increase from Rs 608 crore to Rs 1,660 crore even as the equity share capital will also gain to Rs 816.56 crore. While announcing the preferential offer last month, Anil Ambani also announced an open offer for 32.66 crore shares of the company, aggregating to Rs 838 crore.