| Making merry
Mumbai, Jan. 20: A vibrant grey market has emerged in the unlisted Reliance Communications Ventures (RCVL) just days after the value of four businesses ' telecommunications, financial services and coal and gas related energy businesses ' were peeled away from the Reliance Industries stock as part of the grand Ambani settlement.
RCVL is the holding company for the telecom and communications businesses that are now under the control of Anil Ambani.
Market mavens say the epicentre of this grey market is in Calcutta and shares amounting to over Rs 150 crore have changed hands in the past four days ' and the business is booming.
“The brokers are offering two-way quotes and the price ranges anywhere between Rs 235 to 250 per share and over 50 to 60 lakh shares have been traded, with over 30 lakh shares being traded only in Calcutta,” said market sources.
The grey market is also active in Kanpur, Ahmedabad and to some extent in Mumbai too, sources added.
Under the demerger formula of the Reliance empire, shareholders of Reliance Industries Limited (RIL) will get shares of the four businesses that were demerged from the company in the ratio of 1:1.
Anil Dhirubhai Ambani Enterprises (ADAE) had announced in December that it would endeavour to list the four entities in the first quarter of this calendar year.
Subsequently, the boards of Reliance Energy (REL) and Reliance Capital (RCL) gave their approvals for the merger of Reliance Energy Ventures (REVL) and Reliance Capital Ventures into these companies, respectively.
While a swap ratio of 7.5 shares of REL for every 100 shares of REVL was fixed, five shares of RCL for every 100 shares of Reliance Capital Ventures was announced.
However, the market is more keen on the holding company for the telecom and communication business of the group. There has been a considerable amount of speculation in the market on the valuation of RCVL, with opinions in the market differing on the listing price.
Sources say big-ticket investors, including some of the leading market operators, are taking active interest in the grey market transactions.
In a grey market trade, the buyer enters into an agreement with the seller in which he undertakes to purchase the shares at a particular price after the latter gets allotment of the shares.