The Hindu Business Line : Reliance Industries allots 12 cr shares to promoters

Mumbai, Oct. 3 The promoters of Reliance Industries have been allotted 12 crore shares on exercise of the option to convert the preferential warrants allotted to them last year, a statement from the company said.

At the conversion price, which was fixed at Rs 1,402 a share, the promoters would have paid Rs 16,842 crore to convert their warrants. This price is at a discount to RIL’s Friday closing price of Rs 1,760.95 a share on BSE.

These shares would be locked in for three years.

The shareholding of Mr Mukesh Ambani and other promoters in RIL now stands at 54.9 per cent, said a spokesperson for the company.

The promoters’ stake in the company had fallen during the last quarter, from 51.37 per cent in end June to 44.80 in end September, a decline of 6.6 per cent.

The promoters’ group companies have not sold RIL shares for subscribing to warrants, said a spokesperson of the company.. “The promoters’ stake of 51.37 per cent at end June included 9.42 crore treasury shares held by various bodies corporate for the benefit of RIL shareholders. These bodies have since become subsidiaries of RIL. Consequently these 9.42 crore shares do not enjoy voting rights and can no longer be grouped under shares held by the promoter group. These shares have been grouped under public shareholding,” he said.

During this quarter, the RIL stock had registered a high and a low of Rs 2,375 (August 13) and Rs 1,764 (September 18), respectively.

On Friday, the stock slid almost 8 per cent on BSE, also touching its 52-week low of Rs 1,745.

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