No discrimination against RIL shareholders

Our Corporate Bureau
31 January 2005

"This allegation is baseless," a Reliance statement sent from Dhirubhai Ambani Knowledge City stated.

There were reports that Reliance Infocomm shares were allotted at a discounted price to four companies, one of them controlled by a close confidante of the RIL chairman, Mukesh Ambani.

According to the statement, RCIL, the holding company of RIC, has a total equity base of 200 crore shares. Of these, 90 crore shares were allotted to RIL and another 90 crore to corporates. The remaining 20 crore shares are held in a trust for business associates and employees.

Initially, RCIL issued 81 crore shares to RIL and corporates at par, that is, one rupee each. Subsequently, RCIL issued nine crore shares, each of Rs250 value, to RIL and corporates.

"It is clear that a total of 90 crore shares each, at an aggregate price of Rs2,331 crore averaging to Rs25.90 per share, were issued to both Reliance Industries Ltd and corporates. at the same terms, price and time.

"So, the allegation that RIL has been issued shares at Rs250 and the others at par, is totally baseless," the statement said, adding, "the question of any discrimination to Reliance Industries Ltd or loss to its shareholders does not arise at all."