Ambani's confidant PMS Prasad pledges over 90% of his Reliance Industries shares1 min read . Updated: 30 Jul 2020, 09:34 AM IST
- Prasad owned a total of 640,000 RIL shares which he pledged on 29 June, 2020, worth ₹103 crore
- He currently holds 40,000 shares which he subscribed to in the company's rights issue
MUMBAI: Mukesh Ambani loyalist and executive director at Reliance Industries (RIL), PMS Prasad, and has pledged 93.75% or 600,000 shares of the company he owns in RIL, according to stock exchange filings. Prasad sits on the board of the company.
Prasad owned a total of 640,000 RIL shares which he pledged on 29 June, 2020, worth ₹103 crore. He currently holds 40,000 shares which he subscribed to in the company's rights issue. He had sold 136,666 shares in September 2017.
The shares were pledged on June 29, 2020 and were worth ₹103 crore. Prasad currently has 40,000 shares which he subscribed to in the company's rights issue.
Shares are pledged when one needs to raise funds to meet financial obligations or fund other ventures or acquisitions.
Prasad has been part of Mukesh Ambani's A-team for the last 35-odd years. He has held various positions in the fibre, petrochemical and petroleum business of RIL, and is responsible for putting RIL on the global energy map. He is credited with bringing RIL's Hazira petrochemical complex on stream in the 1980s and later the man behind RIL's Krishan Godavari achievement.
According to stock exchange filings, RIL's chief financial officer (CFO) Alok Agarwal had pledged 1.44 million shares in September 2019 and revoked the pledge on 940,000 shares even as he pledged another 225,000 shares in June. He acquired a little over 100,000 shares through the rights issue last month.
RIL’s stock has risen 151% from the lows in March, with a 27.83% jump till 28 July and has rallied 45.17%, outpacing the benchmark Sensex.
On Tuesday, analysts downgraded RIL shares citing steep valuations after a robust rally over the past few weeks. On the other hand, foreign brokerage firms CLSA and Goldman Sachs said the stock will see upside to the current price.
Downgrading its rating from ‘outperform’ to ‘buy’, CLSA analysts said while its long-term promise and underweight position in portfolios may support the stock price, large valuation surprises may be difficult in the near term. CLSA set a target price of ₹2,250 factoring in the street-high valuation for Reliance Jio and Reliance Retail. CLSA expects the company’s market capitalization to cross $220 billion by March 2022.