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Mumbai , Oct. 16

RELIANCE group is planning to increase its stake in IPCL to 51 per cent by acquiring additional shares from the Government, Mr Anil Ambani, Vice-Chairman and Managing Director, Reliance Industries Ltd (RIL), said today.

Addressing a press conference here, he said as per the modified agreement on IPCL disinvestments between the Government and Reliance, the company would like to acquire additional 5 per cent from the Government to take the group holding to 51 per cent. ]

This follows the Government plans to offload its remaining 34 per cent holding in IPCL through IPO.

Reliance group had taken 26 per cent Government stake in March 2002 through the bidding process at Rs 231 per share and acquired additional 20 per cent by making an open offer.

Mr Ambani said independent valuers would decide the price at which the additional shares would be acquired.

He said as per the agreement, if Reliance does not exercise the option then the Government is free to sell its holding through an IPO and if the IPO does not materialise then Reliance will have a call option to buy the entire Government stake.

Meanwhile, Unit Trust of India (UTI) stake in RIL has come down below three per cent from the peak 13 per cent, Mr Ambani said. Selling the shares in the open market has resulted in dilution of UTI stake.

Mr Ambani said with the sale of major portion of RIL shares by UTI, the overhang of selling pressure by UTI is over.

He also informed presspersons that between December 2002 and till date the holding of FIIs have increased from 15.5 per cent to 20.1 per cent. The holding in GDR has also increased from 5.6 per cent to 6.1 per cent. However, during this period, the shareholding of public and financial institutions have come down.

Mr Ambani said FIIs have pumped $600 million along in buying the shares of RIL this year. The stock price of RIL, has increased from Rs 297 in January this year to Rs 484 today, a gain of 63 per cent and during this period BSE Sensex gained by 43 per cent from 3,390 to 4,855.

This year, the stock price of RIL has outperformed in terms of returns compared to other international oil and petrochemicals major, he said.

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