Reliance Cap eyes more buys like Adlabs

ADA Enterprises chief Anil Ambani on Wednesday said his group company Reliance Capital would explore investment opportunities like Adlabs Films, where its investment of Rs 360 crore appreciated more than 100 per cent within two months of acquisition.

"Reliance Capital will actively look for similar opportunities like Adlabs (whose acquisition was announced in June by RCL subsidiary Reliance Land)," Anil Ambani told shareholders at the company's 19th annual general meeting, held in the refinery complex of RIL, a company headed by his brother Mukesh.

He said the investments made for acquisition of Adlabs had more than doubled in the last two months and the company would look for more such entities with proven track record and good financial health.

Briefing the shareholders about RCL's activities, including acquisitions and beefing up the equity capital, Anil, who got the company as part of settlement with Mukesh on June 18, said the priorities for the Reliance Capital would now be to grow the mutual fund, life and general insurance businesses.

ADA Enterprises had last month bought out a life insurance company AMP Sanmar, presumably for about Rs 100 crore to gain a direct entry into the business, doing away with the necessity to acquire a licence from the Insurance Regulatory and Development Authority (Irda) that stipulates a minimum paid-up capital of Rs 100 crore.

Anil Ambani, who flew in from Mumbai to address the AGM, became nostalgic when he reached the refinery, whose staff accorded him a warm welcome. This was the first time he visited the refinery after differences with his brother Mukesh became public in November last year.

He informed the shareholders that the net worth of the company had improved to Rs 4,500 crore after the infusion of fresh capital.

After the settlement, Anil pumped in over Rs 2,000 crore of his own money to get preferential equity, besides foreign institutional investor hiking their stake in the company, which has zero debt and no non-performing asset.

Meanwhile, Adlabs on Wednesday told the National Stock Exchange that Reliance Land and Reliance Capital are deemed to have acquired control and become the promoters of the motion pictures company after finalisation of the acquisition deal with immediate effect.

However, as requested by Reliance Land Pvt Ltd, Adlabs CMD Manmohan Shetty, whole-time director Pooja Shetty, and director Vasanji Mamania will continue to be on the board of the company in their professional capacity.

Reliance Land and Reliance Capital (as persons acting in concert) have raised their stake in Adlabs to 34.04 per cent after acquiring 30.55 per cent equity in the company, NSE was informed.

Reliance Capital proposed to pick up 51 per cent stake in Adlabs for a consideration of Rs 360 crore.

The non-banking finance company of ADA Enterprise had earlier bought 58 lakh shares from Adlabs co-promoters for a consideration of Rs 100 crore and announced an open offer for 20 per cent.