Reliance Infocomm valued at Rs.22,532 crore
By Our Corporate Bureau | 29 Jun 2005
New Delhi: Reliance Infocomm now stands valued at Rs22,531.52 crore, with its promoting company, Reliance Industries, converting preference shares of Reliance Infocomm into fully paid-up equity shares of the face value of Re1 each at a price of Rs32 per equity share. Reliance Infocomm would in turn allot 287.76 crore equity shares of face value of Re1 each to RIL for a value of Rs9,208.27 crore, the amount RIL had invested in the company. Prior to conversion, Reliance Infocomm''s paid up capital was Rs416.35 crore. Out of this, around 43 per cent was hold by Reliance Industries and the rest by Mukesh Ambani and his associates.
After the conversion, the paid up capital will increase to Rs704.11 crore and RIL''s holding in the company will be 65.9 per cent. The other promoter''s holding will be reduced to 34.1 per cent. At the conversion price of Rs32 per share, the market capitalisation of the company will be Rs22,531.52 crore.
The ownership of 34.1 per cent share of Reliance Infocomm will also be transferred to Anil Ambani''s name. RIL had invested Rs8,100 crore, representing 162 crore preference shares in Reliance Infocomm. The value of the preference shares after accruing the premium had become Rs9,208.27 crore which has been converted into shares.