The Hindu Business Line : Reliance Ind classifies shares held by subsidiaries under ‘public’

Chennai, Oct. 2 Reliance Industries has classified shares held by its own subsidiary companies as ‘public shareholding’ in its filing with the Bombay Stock Exchange on shareholding pattern as of September 30, 2008.

The company has stated that these shares do not enjoy any voting rights. The total number of shares issued and outstanding as on September 08 is the same as that on June earlier. In the event, the latest classification could mean one of two things: That during the quarter under review, nearly 9.5 crore shares lost their voting privileges or alternatively, the shares in question had always been without voting rights but that the company decided to change the classification from ‘promoters’ to one of shares held by the ‘public’.

Consequently, promoters’ shareholding dropped from 50.98 per cent in the June quarter to 44.8 per cent at the end of the September quarter. Promoters’ holding stood at 50.98 per cent at the end of September 2007.

Sources familiar with the regulatory framework of listed companies indicated that there has been no change in SEBI’s guidelines on investor protection warranting a change in treatment involving non-voting shares held by subsidiary companies.

Even the other major class of investors — foreign institutional investors (FIIs), mutual funds and HNIs (High Networth Individuals) — have pared their holding in the company. However, insurance companies have hiked their stake during the quarter.

FII holdings dipped to 16.97 per cent (17.11 per cent), mutual funds to 2.69 per cent (2.83 per cent) and HNIs — individual shareholders holding nominal share capital in excess of Rs 1 lakh — to 1.27 per cent (1.32 per cent).

Insurance companies’ stake increased to 6.26 per cent (5.94 per cent). On other hand, retail investors — individual shareholders holding nominal share capital of up to Rs 1 lakh — remained almost indifferent as their holding stood at 11.09 per cent (11.06 per cent).

During the quarter, the stock tumbled 8.8 per cent and also registered its 52-week low at Rs 1,764.

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