The Reliance group has pledged 50 lakh shares of Larsen & Toubro held by it as security for the open offer for a 20 per cent stake in the power major, BSES. The shares represent only 2 per cent of L&T's equity base, of which Reliance holds over 11 per cent.
The group has also made a cash deposit of Rs 6.45 crore in an escrow account opened with HSBC Bank, which represents one per cent of the total outgo for the open offer, if fully subscribed.
The value of the L&T shares pledged is around Rs 92 crore, at Monday's market price of Rs 183.95 a share.
Reliance's offer will open on June 17 and close on July 13, according to the draft public announcement prepared by the managers to the offer, JM Morgan Stanley. The last date for payment for the offer is August 16.
The open offer has been made by Reliance Industries and its wholly-owned subsidiary, Reliance Power Ventures (RPVL), at Rs 234 per share.
During the 12-month period prior to the announcement,
the highest price Reliance paid for BSES shares was Rs 223, while the average acquistion price was Rs 182. The group at present has a 14.82 per cent stake in BSES.
