Mumbai, Feb. 8: A day after he acquired ownership and control of the four companies demerged from Reliance Industries, Anil Ambani announced plans to list all the entities on the bourses by March 10 and merge the holding firms for financial services and energy-related businesses with the underlying companies that are already listed.
The younger Ambani scion was also appointed chairman of the four demerged entities.
Reliance Capital Ventures Ltd (RCVL) will be the first company to list in the week of February 13. After RCVL, the Reliance-ADA group will list Reliance Energy Ventures Ltd (REVL) during the week starting February 20, Reliance Natural Resources Ltd (RNRL) in the subsequent week and finally Reliance Communications Ventures Ltd (RCoVL) in the week beginning March 6.
Yesterday, the boards of these entities were reconstituted as Mukesh Ambani passed ownership and control to the Anil camp.
The younger brother had earlier stated his intention of going in for a staggered listing of the four companies.
The big beef between the two sides was over the delay in listing RCoVL. The Anil camp refused to furnish information that would have helped the Mukesh side to draw up the information memorandum that has to accompany a request to the bourses for listing.
The Anil group had claimed that they could not provide the requisite information since they did not have the dope on about 200 companies.
At the board meetings of these four companies held today, the directors reviewed the listing documents including the draft information memoranda submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) when they were under the control of RIL. They also decided to submit revised information to the stock exchanges.
The draft information memoranda is an important step that is taken prior to listing on the stock exchanges.
The Anil Ambani group said it will now submit “full and correct information” to the stock exchanges. Though officials from the group did not comment on what this meant, sources alleged that RIL had not given full disclosures to the exchanges. “We have championed the cause of corporate governance and we will be giving full disclosures to the stock exchanges,” they added.
The listing of these four companies would be followed by a merger of REVL and RCVL with the utility major Reliance Energy (REL) and Reliance Capital Ltd (RCL) respectively. Subsequent to this amalgamation, the shares of REL and RCL held by REVL and RCVL would be cancelled.
The scheme of amalgamation approved today envisages a share swap ratio of five equity shares of RCL for every 100 shares of RCVL. Similarly, the exchange ratio of 7.5 equity shares of REL for every 100 shares of REVL has been fixed.
It may be recalled that the boards of both REL and RCL had last month given their approvals for the merger of REVL and RCVL with them respectively.
The Anil Ambani group had then explained that the main rationale for the move was to eliminate dual listing of companies in the same businesses and also abolish the 'potential holding company discount'.
Since the value of the holding companies depend on the underlying operational units, it feared that these shares would not realise their trading potential and would quote at a discount.
Meanwhile, a day after gaining control of four new entities carved out of RIL, the Anil Ambani group today rechristened the insurance business it acquired from AMP Sanmar as Reliance Life Insurance Company.