Global listing of Reliance Cap by April

Three Anil Dhirubhai Ambani Group companies""Reliance Capital, Reliance Communication Ventures and Global Fuel Management Services ""will be listed overseas by April.

The proposed overseas listing of these companies will help the GDR (global depository receipt) holders of Reliance Industries to use their rightful shares in the demerged entities.

The three companies were likely to be listed at the Luxembourg Stock Exchange, sources said, as the Reliance GDR is listed on that bourse.

The GDR holders of Reliance Industries are entitled to get, like any other equity shareholder, shares of four resulting companies""Reliance Energy Ventures, Reliance Capital Ventures, Global Fuel and Reliance Communication Ventures""being created for the division of the Reliance empire between the Ambani brothers, Mukesh and Anil.

Reliance Energy Ventures and Reliance Capital Ventures will be merged with Reliance Energy and Reliance Capital, respectively. Since Reliance Energy has an outstanding GDR programme, the overseas listing of Reliance Capital, Reliance Communication Ventures and Global Fuel will serve the purpose.

The sources said Reliance Communication Ventures and Global Fuel need to be listed on the Indian bourses at least a month before they issue the GDRs.

"The foreign listing of the stocks would be based on the average traded price and quantity of the stocks in Indian bourses," they explained.

They said the domestic listing of Reliance Communication Ventures, the proposed holding company of the ADAE Group's telecom business, is something to "watch out for."

The telecom business includes Reliance Infocomm, Reliance Communications Infrastructure, Reliance Telecom and Flag Telecom. It is expected to be the flagship of the group in future.

However, Global Fuel undertakes the gas-based energy business of the group. The book value of Reliance Industries' investment in this company is insignificant. The sources were not sure how this company would perform in the stock market.

For every 100 shares held in Reliance Industries, shareholders will get 5 Reliance Capital shares, 7.5 Reliance Energy shares and 100 shares each of Reliance Communication Ventures and Global Fuel Management Services.

The "specified shareholders" of Reliance Industries will not take shares of the resulting companies, according to the demerger scheme.

The specified shareholders are Petroleum Trust (which holds a 7.5 per cent stake in Reliance Industries) and four firms (which have a combined 4.7 per cent stake) namely Reliance Aromatics and Petrochemicals, Reliance Energy and Project Development, Reliance Chemicals and Reliance Polyofins. GDR holders hold 87.83 million shares, representing a 6.30 per cent stake in Reliance Industries.