Preferential offer will be made at a minimum price of Rs. 25.65
MUMBAI: The board of directors of Reliance Natural Resources Limited (RNRL) on Wednesday approved a preferential offer of equity shares and equity related securities to the Reliance-Anil Dhirubhai Ambani Group, and long term financial investors, "to strengthen the company's capital base and financial position.''
The preferential offer, subject to necessary approvals from shareholders, will be made at a minimum price of Rs. 25.65, being the average of market prices for the preceding two weeks. The offer price represents a premium of over 400 per cent to the face value of Rs. 5 per share of RNRL.
"Reliance-Anil Dhirubhai Ambani Group will subscribe up to Rs. 1,052 crore through the preferential offer at the same price, reflecting a strong commitment to RNRL's future growth, despite considerable uncertainties surrounding the gas supply agreement with Reliance Industries Ltd.,'' stated a press release issued here on Wednesday by Reliance Natural Resources Limited.
ADAG open offer
The company has been informed that, in accordance with the SEBI Takeover Code, Reliance-Anil Dhirubhai Ambani Group will announce an open offer for 32.66 crore shares, representing 20 per cent of the expanded equity share capital of the company, aggregating Rs. 838 crore. The offer will open on May 3 and will close on May 22.
RNRL's net worth will increase from Rs. 608 crore to Rs. 1,660 crore, on completion of the preferential offer. The company is now debt free. The company's equity share capital will increase to 163.31 crore equity shares of Rs. 5 each, aggregating Rs. 816.56 crore and reflecting a market capitalisation of Rs. 6,181 crore, based on the closing price as on March 14. The indicative revised shareholding pattern of the company will be as follows: retail investors 19 per cent; FIIs 16 per cent; GDRs and others 4 per cent; domestic institutions (FIs, banks, MFs) 6 per cent, and promoters 55 per cent.