Reliance Capital m-cap to touch Rs10000 cr: Anil

Reliance Capital's market capitalisation would touch Rs 10,000 crore after the proposed equity infusion, said Anil Dhirubhai Ambani, chairman, at the company's extraordinary general meeting (EGM) said.

The newly created Anil Dhirubhai Ambani Enterprises (ADEA) has proposed to infuse Rs 2,300 crore in Reliance Capital. Besides, foreign institutional investors (FIIs) have made a commitment of Rs 4,500 crore towards its equity against an offer of Rs 370 crore.

Post infusion, Relance Capital's net worth will go up from Rs 1,500 crore to Rs 4,500 crore.

"At current market prices, based on the planned equity infusion, our market capitalisation will touch Rs 10,000 crore," Ambani said.

With the increase in market capitalisation, Reliance Capital would become the third largest financial conglomerate in private sector after ICICI Bank and Housing Development Finance Corporation (HDFC) in the terms of net worth, Ambani pointed out.

It is also the largest non banking finance company in the country in terms of net worth.

The EGM approved the proposal of raising the FII investment limit in the company from 24 per cent to 49 per cent. FIIs now hold over 15 per cent stake in Reliance Capital.

Earlier in the day, addressing shareholders at Reliance Energy's EGM, Ambani said ADEA will invest Rs 1,500 crore in Reliance Energy, the power utility of the group, to finance its future growth plan.

Ambani said the capital would be infused through subscription of preferential shares at Rs 573 a piece. The other investors have committed Rs 250 crore.

Describing himself as a professional manager, he said the proposed investment of Rs 1500 crore was one the "largest investments of a professional in the country."

The net worth of the power utility would go up to Rs 8,200 crore from Rs 6,500 crore following the capital infusion. The borrowing capacity would enhance to Rs 20,000 crore.

The power company has received environmental clearance for its 7,480 MW project at Dadri in Uttar Pradesh.

Ambani said, "I am delighted to report to you today that the government of India, Ministry of Forests and Environment has recently given the necessary clearances for the 7,480 MW Dhirubhai Ambani Energy City Project, which is to be commissioned in phases. This will be by far the world's largest gas-based power project."

He said that the project would source natural gas from Reliance Industries. Ambani said that Reliance Industries has reconfirmed the in-principle availability of gas for the project. The total project cost is estimated to be Rs 11,000 crore.