Tuesday, July 19, 2005

REL shareholders say yes to pref share

THE Reliance Energy Ltd (REL) shareholders on Tuesday approved a preferential issue of shares worth Rs 1,750 crore. Of this, shares worth Rs 1,500 crore would be allotted to Anil Dhirubhai Ambani Enterprises (ADAE) at a price of Rs 573 a share. The balance would be allotted to about six foreign institutional investors. Ministry of Environment and Forests, had given the necessary environmental clearance for the 7,480-MW Dhirubhai Ambani Energy City project at Dadri in Uttar Pradesh. The Reliance Industries Ltd board has already re-confirmed the in-principle availability of gas for the project. Following the preferential equity allotment, the net worth of the company is expected to go up to Rs 8,200 crore from Rs 6,500 crore at present. This constituted an almost 90 per cent premium over the average weighted price of under Rs 300 per share paid by the Reliance Group for acquiring shares in the company.