As a result, Reliance holding in BSES has jumped from 39.46 per cent to 43.03 per cent while the FIIs have increased their holding by 0.27 per cent to 2.44 per cent from the earlier 2.17 per cent.

The GDR holders, which held a 7.45-per cent stake in BSES as on 30 June 2002, have offloaded a 3.76-per cent stake during the July-September period and currently hold only 3.69-per cent stakes in the company. Similarly, mutual funds and UTI have offloaded a 0.08-per cent stake from the 9 per cent they held at the end of 30 June to 8.92 per cent as on 30 September 2002.

The banks and FIs have reduced their exposure in the company to 28.26 per cent from the earlier 28.42 per cent and the public shareholding in the company has also reduced by 0.20 per cent from 13.02 per cent (as on 30 June) to 12.82 per cent (as on 30 September). With these share transactions, the foreign share holding in BSES has dipped by 3.49 per cent to 89,70,862 equity shares, representing 6.51 per cent of the total equity capital, from the earlier 1,37,72,825 equity shares, representing 10 per cent of the total capital recorded at the end of June 2002.

Reliance has steadily increased its stake in BSES over the last couple of years. By 31 March 2002, the Reliance group’s stake in BSES had moved up to 37 per cent on an equal footing with the cumulative stake of institutions. It has since increased to the current 43 per cent.

According to market sources, Reliance Power Ventures and Reliance Industries purchased 32.6 lakh shares and sold 4,874 shares during 1 April-17 September, through market operations. Since Reliance has already hit the Securities and Exchange Board of India limit for creeping acquisition, which is 5 per cent of the company’s equity capital, it cannot buy any BSES shares till 31 March 2003.

Reliance Industries chairman Mukesh Ambani says his group wants to increase its stake in BSES to 51 per cent and gain management control as it sees BSES as its vehicle for future investments in the power sector.