Advertisement
Tuesday, Oct 26, 2021
Outlook.com

My Share In Dad's Cherry Pie

The demerger of RIL was a complex task in a minefield threatening to erupt at each step

My Share In Dad's Cherry Pie
My Share In Dad's Cherry Pie
outlookindia.com
-0001-11-30T00:00:00+05:53
The split settlement scripted by mother Kokilaben was a simple one. But the process to carve out the Reliance empire between brothers Mukesh and Anil is turning out to be a nightmare. This was evident last week when the duo hissed and made up over a few demerger-related issues. Initially, it was critical to identify the assets to be transferred from RIL, the parent company controlled by Mukesh, to Anil. These assets, with a combined book value of over Rs 19,000 crore relating to businesses like telecom, financial services and energy, were transferred to four subsidiaries of RIL. The next step was to transfer the ownership of the four firms—Reliance Communication Ventures, Reliance Energy Ventures, Reliance Capital Ventures and Reliance Natural Resources—to Anil so that he could independently run these businesses. Anil alleged that Mukesh was delaying the transfer and his loyalists contend that when the ADA (Anil D. Ambani) group went to implement the power of attorney (PoA) given by the MDA (Mukesh D. Ambani) group to enable the transfer, it found that the latter was trying to convert the demat shares of the four firms into physical ones. "If the shares had got converted, the PoAs would have become useless, because the share certificates would have been with the MDA group," explain these sources. This was sorted last week when Mukesh transferred the four firms to Anil.

The next step was to get the four firms listed on the exchanges as the demerger envisaged that the existing RIL shareholders would get the same proportion of shares in the four firms as their holdings in the parent company. So, the four firms have to issue over 122 crore new shares each. The increase in capital of each firm is slightly less than RIL's paid-up capital (over 139 crore shares) as the...

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Bombay High Court Adjourns Aryan Khan's Bail Application Till Tomorrow

Former Attorney General of India (AGI) Mukul Rohatgi appeared for Shah Rukh Khan’s son Aryan Khan, along with his existing legal counsel comprising Satish Manishinde and Amit Desai.

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

Explainer | Why A Lawyer Is Seeking FIR Against NCB's Wankhede For 'Extortion' In Aryan Khan Drugs Case

On Monday, a lawyer approached the Mumbai police with a complaint seeking registration of an FIR against Sameer Wankhede and five others for extortion in the drugs-on-cruise case.

IPL Controversy: CVC Capital Under BCCI Scanner

IPL Controversy: CVC Capital Under BCCI Scanner

The BCCI on Monday named RPSG Ventures Limited and Irelia Company Pte Ltd. (CVC Capital Partners) as owners of the new IPL teams from 2022.

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

'TMC & AAP On A Mission To Split Congress Votes And Help BJP In Goa': State Congress Chief

Goa Congress president Girish Chodankar strongly asserted that the voters cannot be wooed with false promises and money as people are deeply rooted in the Congress.

Advertisement