Reliance group's stake in REL crosses 51%

The Reliance group has scaled up its holding in Reliance Energy Ltd (REL) by 4.99 per cent stake to 52.64 per cent.

Reliance Power Ventures, a Reliance group company, informed the stock exchanges that along with Reliance Industrial Investments and Holdings, Reliance Industries and Reliance Capital it has acquired a 4.99 per cent stake in REL. This pushes up the group's holding in REL to 52.64 per cent.

The promoters holding dipped below 50 per cent following a preferential allotment to a string of financial institutions and foreign investors last year.

The acquisition was made on Monday through an allotment of equity shares against warrants held by them. The shareholding of Reliance Power Ventures Ltd along with the PAC's after this acquisition is 52.64 per cent of the total paid up capital of REL.

Earlier, REL had informed the exchanges that pursuant to the SEBI (DIP) guidelines, 2000 and the approval accorded by the shareholders of the company at the extraordinary general meeting held on March 22, 2004, the company had, on April 2, 2004, allotted warrants of Rs 640 each to one of the promoter company "" Reliance Power Ventures Ltd.

Each of these warrants proposed to be convertible into one equity share of Rs 10 each at a premium of Rs 630 each.

Earlier, the RPVL had paid 90 per cent of the issue price of warrants (Rs 576 per warrant). The promoter company (RPVL), in exercise of the option of conversion, paid the balance amount of Rs 64 per warrant and applied for allotment of 97.50 lakh shares aggregating to 4.99 per cent of the equity capital of the REL.