Mumbai, March 15: Anil Ambani is pumping Rs 1,890 crore into Reliance Natural Resources Ltd (RNRL) through a preferential issue and an open offer that will push up promoters’ holding in the company to 55 per cent.
The RNRL board today approved a preferential offer of equity shares and/or equity-related securities to Reliance-Anil Dhirubhai Ambani Group (Reliance-ADAG) and long-term financial investors to strengthen the company’s capital base and financial position.
The preferential offer will be made at a minimum price of Rs 25.65, which is the average of market prices for the preceding two weeks, aggregating Rs 1,052 crore. The offer price is, however, at a discount of 32 per cent to the closing price of RNRL at Rs 37.85 on the stock exchanges on Tuesday.
Besides the preferential offer, the Reliance-ADAG group also announced an open offer to mop up 32.66 crore shares from the public aggregating Rs 838 crore.
“Reliance-ADAG’s investment reflects a strong commitment to RNRL’s future growth, despite the considerable uncertainties surrounding the gas supply agreement with Reliance Industries,” a statement issued by RNRL said.
The company added that RNRL’s net worth will increase 175 per cent to Rs 1,660 crore from Rs 608 crore on completion of the preferential offer. RNRL is, at present, free of debt. Its equity share capital will increase to 163.31 shares of Rs 5 each, aggregating Rs 816.56 crore, reflecting a market capitalisation of Rs 6,181 crore based on the closing price on March 14.
RNRL’s shares were distributed free of cost to over 2 million Reliance shareholders as part of the recent restructuring of the Reliance group.
While the promoters’ stake will rise to 55 per cent following the twin offers, the public holding will come down to 19 per cent. The shareholding of FIIs will stand at 16 per cent. The rest will be split among GDR holders and domestic institutions.
RNRL, formed as a result of the demerger of the Reliance empire, is vested with the gas-based energy undertaking of Reliance Industries Ltd (RIL). It will supply gas from RIL’s blocks to Reliance Energy’s power projects.
RNRL is the third firm after Reliance Energy and Reliance Capital Ltd where Anil Ambani is pumping money by subscribing to a preferential issue of shares. Last year, Anil Dhirubhai Ambani Enterprises (ADAE) invested Rs 1,500 crore in REL through group company AAA Enterprises via a preferential allotment at a price of Rs 573 per share.