Merger effect: RNRL tanks 27pc, R-Power up over 3pc
ADAG firm Reliance Natural Resources (RNRL) today sank over 27 per cent, while the group firm Reliance Power closed up over 3 per cent after touching a 52-week high intra-day.
By PTI |
MUMBAI: ADAG firm Reliance Natural Resources ( RNRL) today sank over 27 per cent, while the group firm Reliance Power closed up over 3 per cent after touching a 52-week high intra-day.
Yesterday, the boards of both the companies approved the merger of RNRL with Reliance Power in an all-stock deal with an exchange ratio of one equity share of R-Power for four shares of RNRL.
Shares of RNRL plunged 27.26 per cent to close at Rs 46.30 on the Bombay Stock Exchange. The scrip touched a-month low of Rs 45.50, down 28.51 per cent during the day.
On the contrary, the shares of Reliance Power remained strong even in a volatile market to surge to a 52-week high of Rs 189.80, up 8.36 per cent. The stock, however, pared the early rally and closed at Rs 181.40, up 3.57 per cent.
"This deal has left the RNRL shareholders in a very tight situation. It will be a difficult time for the investors of both the companies as it will take at least three-four years for Reliance Power to get the benefits of gas promised by Reliance Industries. The shareholders are left with no choice but to stay invested," Geojit BNP Paribas Financial Services assistant vice-president Gaurang Shah said.
The ADAG group has claimed that Reliance Power would reap benefits from RNRL's coal bed methane blocks, and fuel supplies through the latter's coal supply logistics and shipping business. The combined entity would have over 60 lakh shareholders, the largest in the world.
The statement further said RNRL shareholders will benefit from the proposed amalgamation by participating in future growth prospects of Reliance Power's diversified generation portfolio of 37,000-mw and its substantial coal reserves in the country and abroad.
Following the merger, the current valuations peg the market cap of the combined entity at over Rs 52,000 crore. At the end of Friday's trade, the market cap of R-Power stood at Rs 41,979 crore and of RNRL at Rs 10,394 crore.
Meanwhile, the BSE bellwether Sensex ended flat at 17,441.44 points, down 0.11 per cent from previous close.
Yesterday, the boards of both the companies approved the merger of RNRL with Reliance Power in an all-stock deal with an exchange ratio of one equity share of R-Power for four shares of RNRL.
Shares of RNRL plunged 27.26 per cent to close at Rs 46.30 on the Bombay Stock Exchange. The scrip touched a-month low of Rs 45.50, down 28.51 per cent during the day.
On the contrary, the shares of Reliance Power remained strong even in a volatile market to surge to a 52-week high of Rs 189.80, up 8.36 per cent. The stock, however, pared the early rally and closed at Rs 181.40, up 3.57 per cent.
"This deal has left the RNRL shareholders in a very tight situation. It will be a difficult time for the investors of both the companies as it will take at least three-four years for Reliance Power to get the benefits of gas promised by Reliance Industries. The shareholders are left with no choice but to stay invested," Geojit BNP Paribas Financial Services assistant vice-president Gaurang Shah said.
The ADAG group has claimed that Reliance Power would reap benefits from RNRL's coal bed methane blocks, and fuel supplies through the latter's coal supply logistics and shipping business. The combined entity would have over 60 lakh shareholders, the largest in the world.
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The statement further said RNRL shareholders will benefit from the proposed amalgamation by participating in future growth prospects of Reliance Power's diversified generation portfolio of 37,000-mw and its substantial coal reserves in the country and abroad.
Following the merger, the current valuations peg the market cap of the combined entity at over Rs 52,000 crore. At the end of Friday's trade, the market cap of R-Power stood at Rs 41,979 crore and of RNRL at Rs 10,394 crore.
Meanwhile, the BSE bellwether Sensex ended flat at 17,441.44 points, down 0.11 per cent from previous close.
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