The Hindu : National : Reliance Energy plans preferential offer of equity shares

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Monday, Jun 20, 2005

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National

Reliance Energy plans preferential offer of equity shares

Oommen A. Ninan

MUMBAI: The Board of Directors of Reliance Energy Limited (REL) on Sunday proposed a preferential offer of equity shares and/or equity related securities to "Anil Dhirubhai Ambani Enterprises", and long-term institutional investors to further strengthen the company's financial position and to generate long-term resources for accelerating its future growth plans.

The preferential offer, which is subject to approval from shareholders, will be made at a minimum price of Rs. 573 or higher, in accordance with applicable SEBI guidelines.

"Anil Dhirubhai Ambani Enterprises" will subscribe over Rs. 1,000 crores through the preferential offer, reflecting a strong vote of confidence in Reliance Energy Limited's future growth prospects.

The proceeds of the proposed offering will enhance REL's resources for its mega projects in generation, transmission, and distribution of power.

Mr. Anil Ambani said Reliance Capital would be among the top three financial companies in the private financial services and banking sector in the country after restructuring and "Anil Dhirubhai Ambani Enterprises" would invest Rs. 2000 crores in it.

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