RNRL may not have much business till Dadri plant starts: Deven Choksey, KR Choksey Securities

Deven Choksey, MD, KR Choksey Securities, in a chat with ET Now gives his views on the RIL-RNRL verdict.

What does the SC verdict on RIL-RNLR does to RNRL now, what kind of a business do they have left here?

It is an important question. RNRL as such has no business model at this point of time. Now assuming that the gas is supplied at $4.2 and assuming that 28 mmscmd is supplied, assuming that the government allot this particular gas only when Dadri plant starts and not before that.

All these situations probably would mean that RNRL would not have much of a business to talk about for at least next two years till the Dadri plant starts and after the Dadri plant starts - and if they end up getting the gas at $4.2 or whatever the market price at that point of time arrived at by government - then in such situation, the business emerges for RNRL in such case.

My own viewpoint is that since this particular matter is going for arbitration between two brothers in a renegotiation case after this judgement. In such situation RNRL could become a company which would be exchanged between two brothers and the family settlement may get completed through this particular exchange rate. That is what my personal viewpoint is. We will have to wait and see for next six to eight weeks as to how it pans out.