Reliance after the split
10 August 2005
The Reliance group has formally announced the much awaited de-merger plans. What does the future hold for the more focused Reliance Industries and does the current stock price reflect its future potential ? Rex Mathew analyses.
After more than six months of market speculation and media hype, the details of the de-merger from the parent Reliance Industries (RIL) group of companies that now constitute the Anil Dirubhai Ambani Enterprises (ADAE) was formally approved by the RIL board last Friday. Though the details of the de-merger were public knowledge even prior to the formal announcement, courtesy the media-savvy Anil Ambani, the formal announcement has finally laid to rest most of the uncertainties surrounding the Reliance group.
The de-merger plan involves formation of four holding companies and transfer of RIL's holdings in the energy, financial services and telecom businesses to these companies. The fourth company would hold contracts with RIL for supply of natural gas to the power generation ventures of ADAE.
| The Reliance de-merger plan | ||
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