An association of investors in Anil Ambani-led Reliance Energy on Tuesday alleged that the planned IPO of group company Reliance Power will erode the value for REL shareholders, but ADAG termed it as a "vicious campaign" by vested industrial interests.
"A close study of draft prospectus reveals that the power generation business opportunities secured in the name of REL and secured with the strength of REL have been transformed to RPL by means of some internal MoUs and understandings," REL Investors Forum said in a faxed press release.
"The shareholders of REL have been deprived of the entire power generation business prospects to be accrued to them. By means of such a transfer of business and creation of another shell company to issue public shares, now the power generation profits will accrue to the new company in which Anil Ambani holds 50
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