Reliance Comm lists at Rs290 on BSE, races to fourth spot in market cap
Mumbai: Reliance Communications Ventures (RCoVL) listed at Rs290 on the bourses today, with a market capitalisation of Rs35,574 crore.

It reached the day's high of Rs309, and closed at Rs290.85. On the National Stock Exchange (NSE), RCoVL was listed at Rs307, which was also its day's high, and closed at Rs291.50. About Rs2,145 crore worth shares changed hands on the two bourses, accounting for 17 per cent of the total traded value on the exchanges.

Reliance-Anil Dhirubhai Ambani Group (Reliance-ADAG) chairman Anil Ambani said at a press conference after market hours, "This is the first Indian company that has created great value for 2 million shareholders without an IPO," and added, "I am committed to move to a simpler and cleaner holding structure. The objective of the demerger was to avoid cross-ownership and to bring in all telecom and information technology companies under one roof," he added.

At RCoVL's closing price, Reliance-ADAG raced to the fourth position with a Rs71,456 crore market capitalisation. RCoVL ranks 14th among all listed companies on the bourses.

Reliance-ADAG, however does not match up with Mukesh Ambani's Reliance Group, which has a total market capitalisation of Rs1,08,599 crore. Reliance Group continues to be the second largest group in the market cap ranking while the Tata group is at the top with Rs198,816 crore worth of market cap.

Bharti Tele-Ventures, headed by Sunil Mittal, ranks third with a market cap of Rs76,396 crore.
Back to News Review index page  

Reliance Petro files red herring prospectus
Mumbai: Reliance Petroleum has submitted the red herring prospectus for its initial public offering (IPO) with the Securities and Exchange Board of India (Sebi). This will be the largest IPO in the world for a greenfield project.

The company, a wholly owned subsidiary of Mukesh Ambani-controlled Reliance Industries, proposes to launch a book-built issue of Rs11,250 crore to Rs13,500 crore. The issue might hit the capital market in April. The proceeds of the issue will be utilised to part finance the company's Rs27,000 crore investment in the special economic zone at Jamnagar in Gujarat. It has recently concluded a syndicated $1.5-billion (approximately Rs6,750 crore) borrowing deal.
Back to News Review index page  

SEL to raise Rs80 crore via public issue
Mumbai: Nagpur-based Solar Explosives (SEL) producer of solar explosives plans to tap the capital markets with an initial public offer to raise around Rs80 crore to part-fund expansion plans in India and set up a plant in Nigeria. The company would launch the IPO of 44 lakh equity shares of Rs10 each on March 9. The price band for the issue, which ends on March 13, has been fixed at Rs170-190.

The company plans to set up 13 plants at a cost of Rs53 crore for bulk explosives to cater to coal and iron mines in eastern region.

The company, which currently has three plants in the country, has set up a wholly-owned subsidiary in Nigeria and would set up a plant for manufacturing bulk explosives, cartridge explosives and magazines. The unit would entail an investment of Rs23 crore, he said.

At the lower end, SEL would raise Rs74.80 crore and at the higher end it would mop up Rs83.60 crore. Of the total issue size, the company would offer 43.4 lakh shares to the public and the balance to employees. Post-issue, the promoters' stake in the company would come down to 74.6 per cent from the current 100 per cent.

SEL posted a revenue of Rs136 crore, including exports of nearly 6 crore, during 2004-05 with a net profit of Rs14.99 crore. Revenues in the first half this fiscal stood at Rs83 crore and net profit at 11.5 crore.
Back to News Review index page  

MCX, NCDEX head for the courts
New Delhi: India's two biggest commodities exchanges, MCX and NCDEX, are headed for the courts to what seems like an acrimonious legal battle.

The battle between the exchanges, which have been sparring over pulses since January this year and clashed over personnel issues last year, moved to another when the NCDEX entered into a tie-up with the BBA for gold futures trading last week.

At present, 95 per cent of gold futures trading is done on the MCX platform, while the NCDEX gets just 3-4 per cent. MCX, 80 per cent of whose daily turnover of Rs4,500 crore comes from gold, cried foul, saying it had an exclusive tie-up with the BBA.

Feedback from the exchanges said a case opposing the NCDEX-BBA tie-up was filed in a Mumbai lower court last Thursday, only to be withdrawn two days later. Two hours after the withdrawal, another case of similar nature is believed to have been filed.

There are rumours that the MCX had approached a Mumbai lower court on Tuesday seeking a stay on the NCDEX-BBA tie-up, only to have the plea rejected.

MCX officials say the legal option is being taken very seriously.
Back to News Review index page