R-ADAG completes RCoVL revamp,hikes stake to 66%

Chennai/Mumbai: Anil Ambani-led Reliance Communications on Friday said it has completed its corporate reorganisation plan while raising the stake of Reliance Anil Dhirubhai Ambani Group in the company to 66.62%.

The total shareholding of promoter and promoter group stood at 39.72% at the end of March, which increased to 42.23% by June this year, according to the data available with stock exchanges. The reorganisation move, which was initiated in March has been completed in a record six months.

Meanwhile, ADAG is likely to unveil its mega investment plans in Tamil Nadu on Saturday. ADAG is understood to be keen to establish a mega power project as well as a multi-product SEZ near Chennai in the state.

A formal announcement is likely to be made on Saturday, when Mr Anil Ambani is expected to call on Tamil Nadu chief minister M Karunanidhi. Mr Ambani is visiting Chennai to participate in the on-going ‘Connect 2006’, a CII initiative. While a formal MoU is to be inked, the investments could be upwards of Rs 10,000 crore in the long run.

“The ADAG has shown interest in investing in Tamil Nadu. It is likely to focus on power sector and also in establishing an SEZ,” reliable sources close to the government told ET. “It is too early for us to give a clearer picture. But, it is likely to be a multi-product SEZ, which would need about 2,000-2,500 acres, near Chennai,” official sources said.

The state-owned Tidco is establishing a multi-product SEZ over an extent of 2,500 acres of land, at Ennore in north Chennai. However, the project has not made enough progress, as a sizeable portion of land are salt pans, and it is yet to be transferred to Tidco, official sources added.

At present, ADAE’s interest in Tamil Nadu is restricted to Reliance Communications.The company has already invested about Rs 1,500 crore and is set to expand it by an additional Rs 500 crore.

Further, Adlabs, in which ADAE group has a controlling stake, is already managing Vijaya Labs, a film processing unit. Besides inking co-production film deals in Tamil, Adlabs is also talking to property developers to enter the state’s emerging multiplex scene.