Mumbai, June 19: A day after the settlement of his seven-month-old row with elder brother Mukesh, Anil Ambani displayed his strong commitment and confidence by declaring that Anil Dhirubhai Ambani Enterprises (ADAE) will invest close to Rs 3,000 crore in Reliance Energy Ltd (REL) and Reliance Capital Ltd (RCL).
The money will be ploughed in by subscribing to a preferential offer to be made by both companies to ADAE. Reliance Capital will get Rs 2,000 crore, while Reliance Energy will receive Rs 1,000 crore through the placement. The infusion will help generate long-term resources for the firms and strengthen their financial position.
In the case of Reliance Energy, the preferential offer will be made at a minimum price of Rs 573 or higher. The Reliance Capital shares will be placed at Rs 228 or above.
“It is a reflection of my own personal commitment and strong confidence in the future growth prospects,” said Anil today, after chairing meetings of REL and Reliance Capital.
Money raised through the preferential offer is expected to make Reliance Capital among the top three companies in the private financial services and banking sector. Anil has said he is open to the idea of the company offering banking services, if regulators allow it to.
Ambani said financial services is one of the key growth drivers of the economy.
Reliance Capital is planning to be a diversified financial services powerhouse that straddles asset management, mutual funds, insurance and other services.
The board of Reliance Capital was reconstituted today with Anil Ambani being appointed as its chairman. Five other directors, including Anand Jain, who is considered close to Mukesh, resigned from their posts.
Ambani said he was also optimistic about the prospects of Reliance Energy, which, with a market capitalisation of Rs 10,500 crore, has lined up investments of over Rs 80,000 crore in nuclear, hydro, solar, wind, gas and coal- based power projects over 10 years.
He pointed out that various power projects in Uttaranchal and Maharashtra, apart from the modernisation of transmission networks in Delhi and Mumbai, were priorities for the energy company he heads. He asserted that the Rs 11,000-crore Dadri power project in Uttar Pradesh would be commissioned on schedule. The company was in discussions with the Orissa government for a Rs 48,000-crore pit-based power project. Investments in this will be made in a phased manner.
On the contentious issue of IPCL share sale by Reliance Capital at par to some other group companies in a deal that may have caused a loss of Rs 1,000 crore, Anil said the issue was taken up at the meeting today. “We plan to write to Reliance Industries and will wait for its response.”
Anil and Mukesh will be free to use the Reliance brandname and logo as part of the settlement. “Both brothers will use the brand,” Y. P. Trivedi, the RIL director heading its corporate governance panel, said.