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Our Bureau

Mumbai , June 28

THE board of Reliance Industries Ltd (RIL), which met on Tuesday, decided to convert 162 crore preference shares of Reliance Infocomm Ltd - acquired at Rs 8,100 crore - into fully paid-up equity shares of the face value of Re 1 each at a price of Rs 32 per equity share.

Following this, Reliance Infocomm will now allot 287.76 crores of equity shares of face value of Re 1 each, fully paid-up to RIL for a value of Rs 9,208.27 crore, which includes the accrued premium on preference shares.

This allotment will increase the holding of RIL in Reliance Infocomm to 65.9 per cent from 42.35 per cent.

This is part of the ongoing ownership settlement process. It was only on Monday that RIL proposed the acquisition of 6.97 per cent stake in Reliance Energy, held by its wholly owned subsidiary Reliance Industrial Investments and Holding Ltd. As per the terms of settlement, both Reliance Infocomm and Reliance Energy will be controlled by Mr Anil Ambani.

Earlier on December 27, 2004, RIL set up a committee to examine the exercise of the company's option to convert its redeemable preference shares in Reliance Infocomm, which could lead to the increase of RIL's stake in the latter. The committee, consisting of six independent directors, was to consider appointing one or more valuers of international repute to determine the fair value of the equity shares of Reliance Infocomm.

Mr Y.P. Trivedi told mediapersons after the board meeting that RIL was working expeditiously to finalise the modalities of settlement of ownership issues.

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Reliance to convert Infocomm preference shares at Rs 32

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