The Hindu Business Line : Will shareholders benefit from RIL demerger?

The RIL group is well known for adding to shareholder value. Most shareholders are happy that the brothers have come to an amicable settlement. The market seems to have already factored in this in pricing of the group's scrips. (Responses to Sticklish Issues dated August 15):

S. Krithivasan, SBI, s.krithivasan@sbi.co.in

Reliance will never disappoint its shareholders.. Long live reliance. Incidentally, I am not a shareholder at present.

R.Swaminathan, Manager (Retd), SBI, Tiruchi, swaminathanramasethu@gmail.com

All that RIL investors will get is a bunch of stocks. Instead of holding few shares of high market value, they will now hold more shares of lesser value.

That implies that investors will have to keep a watch on more stocks, such as power, finance and telecom. The demerger has only added to the shareholders' headache.

Karthik Narayan, company secretary, Chennai, karthik.globalsoul@gmail.com

Perhaps, it was to boost share value that the Ambani brothers demerged the power, finance, and telecom businesses. Only time will tell what the impact will be.

A. Jacob Sahayam, Thiruvananthapuram, jacob_sahayam@yahoo.co.in

Both the Ambani brothers, notwithstanding their different styles, are magnificent managers. I wish them well for the future. Given the competition in the market, shareholders should not expect the kind of returns from Mr Anil Ambani as they did from his father. A bullock-cart drawn by two bullocks cannot move forward unless the two coordinate. If the cart is pulled by one bullock, even if the load is heavy, it will reach the destination. The demerger is only the beginning of a solution.

To quote a newspaper report: "One uneducated ordinary man from Jamnagar built an empire of industries and two highly educated men, qualified from London, demolished that empire."

Having said that, Reliance is growing and is bound to continue to do so. The demerger may slowdown the growth, but is unlikely to stop it. It will certainly benefit the company as each of the two brothers are capable managers.

A. Bhuvana Bhimaiah, Arasikere, carcow9901@gmail.com

At best the demerger is going to diversify the invested money. It is not going to improve the overall prospects of the investor, as no new issue of shares has been announced.

Subba Lakshmi, Madurai

RIL will certainly reclaim its prime position in the market. Both brothers will give their best to the industry and to their shareholders; they might even try to outdo each other with their offerings to the shareholders. The demerger, undoubtedly, is to the advantage of the shareholders.

K. Nagarajan, Erode

Should colleges impose dress code? (Responses to Sticklish Issues dated August 8):

Dressing fashionably boosts self-esteem and confidence. Society needs bold, brave youngsters. And, therefore, college students should be compulsorily trained in self-defence so that they can protect themselves.

M. Giri Rajakumari, Sivakasi, giri_rk@yahoo.com

In educational institutions, distraction should be minimal. Only then students can concentrate on their studies. I advocate uniforms, not only for students, but also for the teaching community.

S. Krithivasan, SBI, s.krithivasan@sbi.co.in

It is time that all colleges adopted a dress code. After all, students go to colleges to study. College authorities should prescribe sari or salwar kameez for girls and formals for boys.

P. Sreenivasan, AGM, IDBI, Chennai

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