Anil Ambani's proposed Rs 2,000 crore (Rs 20 billion) investment in Reliance Capital is likely to give him a 40 per cent stake in the company. Similarly, his stake in Reliance Energy will be around 8.60 per cent after his Rs 1,000 crore (Rs 10 billion) investment in the company.
This is in addition to the stake he will get in these companies pursuant to their demerger from the Reliance group. It is believed that a new holding company will be formed to own the controlling shares of Reliance Capital, Reliance Energy and Reliance Infocomm.
The new holding company will replicate the shareholding of Reliance Industries in these three companies and no minority shareholder will lose out.
The Reliance 'ownership issue'
Reliance Capital has an equity base of 12.73 crore (Rs 127 million) shares of Rs 10 each. With an infusion of Rs 2,000 crore at a price of Rs 228 per share, Ambani can get 8.77 crore (87.7 million) shares.
In an expanded equity base of 21.50 crore (215 million) shares of Rs 10 each, Anil Ambani's 8.77 crore equity shares would account for 40.8 per cent of the new equity base of the company.
Reliance Industries held 47.20 per cent shares in Reliance Capital as on March 31, 2005. The FIIs' holding was 21.72 per cent and the public holding was 26.53 per cent.
Buy putting Rs 1,000 crore worth equity at a price of Rs 573 per share, Anil Ambani will buy 1.74 crore (17.4 million) shares of Reliance Energy, which add up to 8.60 per cent of the new equity base of the company. Reliance Energy's current equity base of 18.56 crore (185.6 million) share will be expanded to 20.30 crore (203 million) shares.
Reliance Power Ventures and Reliance Industrial Investments Holding together hold 42.85 per cent of REL equity capital of the company. Reliance Capital now holds 6.46 per cent in Reliance Energy.