By Anil Varma, Bloomberg
MUMBAI: Reliance Industries, India’s most valuable company, plans to sell a 10% stake to financial and strategic investors, a leading newspaper said.
Reliance’s associate companies may sell shares held by them in the parent company to financial or strategic investors from India or abroad “at an appropriate time in the future”, Mumbai-based Reliance had said on 10 March.
The associate companies owned a total 47.3% of Indian Petrochemicals, which will be swapped for 2% of Reliance equity after the takeover. Petroleum Trust, another associate, owns 7.5% in Reliance.
Selling a 10% stake in Reliance may raise as much as Rs20,000 crore ($4.5 billion), based on the company’s current share price, the newspaper reported.
The company’s board allowed its chairman, billionaire Mukesh Ambani, and his associates to raise their stake in the company last month by paying Rs1,402 a share.
The issue of 120 million warrants, convertible into an equal number of shares, was approved by the Mumbai-based company’s board on 24 February. The promoters of the company now own 50.62%, according to the BSE.