De-merger move unlocked $10 bn m-cap: Mukesh

The de-merger of the power, financial services and telecommunications businesses of the Reliance group created history, unlocking over $10 billion (Rs 46,000 crore) worth market value, Reliance Industries Chairman Mukesh Ambani told the shareholders at the company's 32nd annual general meeting today.

The value unlocking was done through four de-merged entities "� Reliance Infocomm (Rs 35,575 crore), Reliance Energy Ventures (Rs 5,339 crore), Reliance Capital Ventures (Rs 2,734 crore) and Reliance Natural Resources (Rs 2,269 crore).

However, the major benefits to its shareholder came from the group flagship Reliance Industries (RIL). The stock was trading at Rs 693.85 ex-split on January 17, when four companies were de-merged as separate entities.

RIL has added market capitalisation worth Rs 44,000 crore since then as the stock has moved up to the current level of Rs 985.55, by the end of today's trading on the BSE.

The RIL market price plunged to a low of Rs 408 with the market cap having dipped to Rs 70,000 crore in January 2005, when the spat between the two Ambani brothers became public.

RIL was one of the most underperforming stocks then even as the market was witnessing a bull run. The scrip climbed back steadily thereafter and was trading at Rs 488.50 a day before the split was finally announced (June 17, 2005).

Following the listing of Reliance Petroleum (RPL), market cap of Rs 28,530 crore was added to the group. The Mukesh-led group has added to its market cap a whopping Rs 73,000 crore, post-split, while RIL added Rs 44,000 crore. IPCL has been the only laggard in the group, losing Rs 20 crore market cap since January 17.

RPL put up a good show on its listing with the stock touching an all-time high of Rs 101.95 "� against its issue price of Rs 60 "� and cornering Rs 45,888 crore market cap.