FIIs bid for $1bn pref shares of Rel Cap

Foreign investors have bid over $1 billion for preferential equity in Reliance Capital (RCL) against the target of $75 million.

Market sources said RCL had received tremendous response for the preference issue, which closes tonight.

A company spokesperson, however, declined to comment about the bids.The preferential offering was made by Anil a day after the announcement of the settlement of ownership issues with elder brother Mukesh Ambani.

Anil had also committed Rs 2,000 crore from his personal kitty to Reliance Capital, which comprises mutual funds and general insurance business.

Reliance Capital's share touched an all-time high of over Rs 308 per share on the BSE, and market capitalisation inched towards Rs 4,000 crore.

The RCL board had, on June 19, agreed to issue six crore preference shares of the company to Anil and AEPL, owned by him, at Rs 228 per share totalling Rs 1,368 crore.

RCL has also proposed to issue up to 2.90 crore equity shares of Rs 10 each to financial investors not connected with the acquirers.