The Anil Ambani group’s Reliance Infrastructure on Friday said it had withdrawn a scheme of arrangement to demerge the company, which it had proposed in 2009.
“We submitted an application to the Bombay High Court in April 2009 for internal reorganisation of some of businesses between the company and its 100 per cent owned subsidiaries, which was pending for implementation,” the company said in a statement to the stock exchanges.
Two years earlier, the company proposed to demerge the company into subsidiaries for separate businesses like transmission, the distribution business, roads and others. “In view of the considerable lapse of time of nearly two years and subsequent changes in the business environment, the proposal is no longer considered relevant and has been withdrawn on March 25, 2011, with the approval of the Bombay High Court. There is no impact on the profitability or business of the company,” the statement said.
The stock went up 2.3 per cent in Friday’s trade, to close at Rs 650 per share, shows data available on the Bombay Stock Exchange.
Reliance Infrastructure has interests in various areas such as road projects, airports, metro rails, sea link project, power transmission lines and two speciality real estate projects. In addition, it has power distribution licences in the Mumbai suburbs and Delhi. It also has an engineering, procurement and construction business, which has an order book of around Rs 30,700 crore.
The company is developing 24 infrastructure projects, including 11 road projects, five transmission line ones and two metro rail projects. Its airport express link project was commissioned earlier this month.