BUSINESS

Stock exchanges ask Reliance to clarify settlement reports

NEW DELHI, MARCH 24. The stock exchange authorities today asked the Reliance Group to clarify reports on settlement between the wrangling Ambani siblings under which Mukesh is to get the flagship company, Reliance Industries, and his younger brother, Anil, Reliance Infocomm, Reliance Energy and Reliance Capital.

Companies headed by each of the two brothers sidestepped the issue of settlement saying they were unaware of the veracity of the reports and declined to make comments. Neither camp commented on the settlement process or its status.

In identical clarifications, RIL and IPCL, both headed by Mr. Mukesh, informed the BSE that "they are not aware of the veracity of the contents of the news report referred and can make no comments.''

It was widely reported in the media that as part of division of assets, Mr. Mukesh was also likely to control IPCL on the basis of a formula recommended by the ICICI Bank Chief, K. V. Kamath, in his valuation report submitted to Kokilaben, widow of the group founder, Dhirubhai, last month.

Maintaining that it was not the company's policy to comment on speculation and rumours, Anil-headed Reliance Energy informed the National Stock Exchange that "developments, if any, which concern stakeholders of the company will be intimated in due course, and at the appropriate time, in line with listing agreements.''

As the exchange authorities sought clarifications, the stock prices of group companies, including Reliance Capital, showed moderate increase during intra-day trading before closing slightly higher than the last trading session.

The Managing Director of Reliance Capital, Anand Jain, clarified to the BSE that they are "not aware of the veracity of the contents of the news reports referred and can make no comments thereon.''

Following speculation that settlement was on cards after the group companies' shares spurted in an otherwise lacklusture stock markets, officials of both Mukesh and Anil-controlled companies were either not available or refused to comment.

Today RIL shares spurted to a high of Rs. 567 before closing at Rs 560.10, up from the previous closing of Rs. 553.15. Likewise, IPCL shares closed at Rs. 168.05 against Rs. 167.45 in the previous day. Reliance Energy, however, closed at Rs. 531.95 against the previous closing of Rs. 537.35. — PTI

Recommended for you