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C.R. Sukumar

Hyderabad , Oct. 17

THE promoters of Rain Calcining Ltd (RCL), the Hyderabad-based Rs 333-crore calcined petroleum coke and power producer, have acquired the entire 24.79 per cent equity holding of their foreign technology and equity partner — Reliant Energy Rain Inc, a subsidiary of the US-based Houston Industries Energy Rain Inc.

Of the RCL's paid-up equity of Rs 129.48 crore, the Indian promoters now have a 25.48 per cent stake, while the foreign promoters are holding 29.79 per cent. Among the foreign promoters, Asian Finance and Investment Corporation would continue to hold its five per cent stake in the company.

The acquisition, considered to be a major inter-se acquisition deals in the recent past, of 3.21-crore equity shares of Rs 10 each held by the US partner would now enable the Indian promoters of RCL to consolidate their equity holding to little over 50 per cent, the RCL General Manager (Finance) and Compliance Officer, Mr G.R. Chary, told Business Line. Sujala Investments Private Ltd (SIPL), a promoter shareholder of RCL holding shares under the Indian promoter category, would acquire the entire shareholding of US partner.

According to Mr Chary, the said acquisition was being made under SEBI Regulations providing for inter-se-transfer of shares between the Indian promoters and foreign collaborators, both of them being promoter shareholders of RCL.

RCL has Asia's largest facility for manufacture of 3-lakh tonnes of calcined petroleum coke, which constitutes three per cent of the world's total requirement. The company also has 50 MW power project.

Reliant Energy Rain Inc is an indirect wholly-owned subsidiary of the US-based CenterPoint Energy International Inc (CPE), with whom RCL had initially entered into a technical assistance agreement (TAA) for providing assistance during construction and operation of the 52.5 MW power plant attached to the 3-lakh tonne petroleum coke calciner.

According to Mr Chary, the TAA has expired on July 16, 2003. "As the technology for the power plant has been fully absorbed by the company, it was felt that the services of CPE are no longer necessary, and as such the TAA was not extended."

In accordance with the shareholders' agreement entered into with the US partner initially, Sujala Investments is acquiring the shares of Reliant Energy by way of an inter-se-transfer of shares between the promoters. Since these shares are subject to lock-in provision under the loan agreements entered into with the financial institutions and banks, they can only be transferred between the promoter shareholders, Mr Chary said.

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