So, how much will you really gain from the de-merged RIL companies?

Rex Mathew clears the confusion about the value of the shares in RIL's de-merged ADAG group companies.

The delay in listing the four de-merged companies and the proposed mergers between two of the companies transferred by RIL to Anil Ambani's ADAG on February 8, 2005 — Reliance Energy Ventures (REV) and Reliance Capital Ventures (RCV) — with Reliance Energy Limited and Reliance Capital Limited (that were managed by Anil even before the formal split) has left the average retail investor totally confused.

Most small investors are uncertain about the shares they have received after the split and what to do with the new shares of ADAG companies allotted to them.

There have been media reports about small some investors selling the shares of Reliance Energy Ltd and Reliance Capital Ltd on the mistaken belief that the shares of REV and RCV transferred by RIL to their demat accounts were the same as Reliance Energy and Reliance Capital shares. They were unable to give delivery for these shares, as they are not the same and the proposed mergers between them have not yet happened.

REV and RCV are holding companies which hold equity stakes in Reliance Energy Limited and Reliance Capital Limited respectively. REV and RCV have no other businesses and their values can be directly arrived from the value of their holdings in the two operating companies, Reliance Energy and Reliance Capital.

Since only the two operating companies (REL and RCL) are listed on the exchanges, the values of REV and RCV can be directly calculated from the current market prices of Reliance Energy Limited and Reliance Capital Limited.