Mukesh Ambani to up RIL stake at Rs 1,402 a share

MUMBAI: Mukesh Ambani, the chairman of Reliance Industries (RIL), along with his other associates, will pay Rs 1,402 per share (Rs 16,824 crore) for increasing their stake in the company through warrants issued on a preferential basis.

RIL announced on Monday that the warrants will be priced at Rs 1,402 per share which is based on the average closing prices in the two weeks preceding February 27, an RIL statement said on Monday.

The shareholders’ consent will be sought through a postal ballot. The last date for receipt of the postal ballot from the shareholders is March 29, 2007, and the company is expected to announce the results of the resolution being passed through postal ballot on March 30, 2007.

An amount equivalent to 10% of the price would be paid on allotment of warrants and the remaining 90% would be paid at the time of subscription to equity shares on exercise of rights attached to the warrants within 18 months. On exercise of such rights, the paid-up capital of the company will increase from Rs 1,393 crore to Rs 1,513 crore.

On Monday, RIL shares fell 0.40% or by Rs 5.60 to close at Rs 1,407.20 in a firm Mumbai market. Analysts believe that stocks of India’s most valued firm fell on anticipation that the company will sell stock to fund its $13-billion capital expenditure and the promoters wanted to retain a majority stake in the company even after a possible sale of the company’s shares.

RIL on Saturday announced to build one of largest petrochemical complex at its Jamnagar special economic zone for $3 billion, taking the total investments in the ongoing projects to over $13 billion.