Did Anil jump the gun?

Anil Ambani seems to have pre-empted the Reliance Industries board on the announcement of the demerger formula. Early in the day, Reliance Industries Chairman and Managing Director Mukesh Ambani refrained from giving details on the demerger plan at the company's annual general meeting (AGM) and said it was not cleared by the board.

Barely an hour after the AGM, Anil Ambani called a press conference to announce the details of the plan. At the AGM, Mukesh Ambani said that RIL had appointed Crisil, Deloitte Haskin and Sells, Amarchand Mangaldas and Suresh, A Shroff & Co and JM Morgan Stanley to work out the details of the demerger. But Anil Ambani went ahead and gave full details of the plan.

Anil Ambani said he worked out the swap ratios by "simply going by the fairness value".

He explained, "The reorganisation scheme was based on four pillars "" fairness, transparency, the need to unlock value and to enhance wealth for over 23 lakh shareholders of Reliance Industries."

When asked how he could announce the demerger plan without the board clearance, Anil Ambani said, "One should ask this question to Reliance Industries."

Even before Anil Ambani's press conference was over, Reliance Industries sent a notice to the Bombay Stock Exchange, saying, "The board of directors has proposed 'in-principle' to demerge the power, financial services and telecommunication services businesses from the company by transferring the company's holdings and interests in these businesses into separate corporate entities. The company shall inform the details of the scheme when finally approved by the board of directors."