Reliance asked to clear the air

Bourses react to peace move reports.

Stock exchanges today asked the Reliance group companies to clarify on reports of the alleged settlement between the warring Ambani brothers, Mukesh and Anil.

Newspaper reports said a patch-up was around the corner, with Mukesh getting flagship company Reliance Industries Ltd (RIL) and his younger brother Anil Reliance Infocomm, Reliance Energy and Reliance Capital.

The spokespersons of the companies headed by the two brothers said they were unaware of the veracity of the reports and declined to make comments. Neither camp commented on the settlement process or its status.

RIL and IPCL, both headed by Mukesh Ambani, informed the Bombay Stock Exchange that "they are not aware of the veracity of the contents of the news report referred and can make no comment".

It was reported that as part of the division of assets, Mukesh Ambani was likely to control IPCL on the basis of a settlement recommended by ICICI Bank chief KV Kamath in his report submitted last month to Kokilaben, widow of group founder Dhirubhai Ambani, last month.

Maintaining that it was not the company's policy to comment on speculation and rumours, Reliance Energy informed the National Stock Exchange that "developments, if any, which concern stakeholders of the company will be intimated in due course, and at the appropriate time, in line with the listing agreements".

As the exchanges sought clarifications, the share prices of group companies, including Reliance Capital, went up moderately during intra-day trading today before closing slightly higher than the last trading session.

Reliance Capital Managing Director Anand Jain, a close associate of Mukesh Ambani, clarified to the BSE that they were "not aware of the veracity of the contents of the reports referred and could make no comments thereon".

The RIL stock spurted to a high of Rs 567 before closing at Rs 560.10, up from the previous closing of Rs 553.15. The IPCL stock saw a day's high of Rs 172.80 and closed at Rs 168.05, marginally higher than yesterday's closing of Rs 167.45.

The Reliance Energy stock, however, closed at Rs 531.95 a share, down from the previous closing of Rs 537.35 before the scrip touched the day's high of Rs 558 after opening the session at Rs 549.90.