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Anil makes open offer for 20 pc in RCL

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Our Bureau

Mumbai, June 21

WITHIN two days of committing funds in Reliance Capital Ltd (RCL) its Chairman, Mr Anil Ambani, on Tuesday made an open offer to acquire 20 per cent of the company's shares at Rs 231 per share.

In a notice to stock exchanges, RCL said Mr Anil D. Ambani and AAA Enterprises Pvt. Ltd were making an open offer to acquire additional 5.14 crore shares of RCL at Rs 231 per share.

The total financial resource for acquiring 20 per cent additional holding would be Rs 1,188.75 crore.

The offer for 5.14 crore shares was made in compliance with the Securities and Exchange Board of India's takeover regulations. The offer would open on August 11 and close on August 30.

The offer being made to the RCL shareholders is lower than today's closing price of Rs 289.45 on the BSE. However, the stock price had gained sharply on Monday by 25 per cent.

On Sunday, the company's board had proposed a preferential offer of equity shares and equity related securities with an option to convert them into equity shares, up to Rs 3,000 crore to Anil Dhirubhai Ambani Enterprises, and long-term institutional investors.

Out of this, Anil Dhirubhai Ambani Enterprises will subscribe approximately Rs 2,000 crore through the preferential offer.

The new infusion of funds will rank the company among the top three companies in the private financial services and banking sector in the country, the notice to BSE has said.

(This article was published in the Business Line print edition dated June 22, 2005)
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