Ministry has received representations from various quarters including some Members of Parliament alleging that the proposed IPO would destroy shareholder value of the parent company Reliance Energy Ltd (REL), which is a listed entity.
“Since the company has already filed its draft red herring prospectus with the capital market regulator, the Ministry is not directly involved. However, in order to ensure that the regulatory norms including those prescribed under the Companies Act are not flaunted, the Ministry is taking necessary precautions,” sources said.
“The projects have been transferred under the agreement of September 14, 2007. This is highly irregular and is in clear violation of Section 293 (1) (a) of the Companies Act,” it has been alleged.
As per the Section, the board of directors of a public company cannot transfer any undertaking of the company without the consent of shareholders.
Meanwhile, a spokesperson of REL refuted the charge that there is any irregularity in the company having transferred these power generation projects to its group company Reliance Power for execution by it. These projects have been conceived a long time ago and it was the decision of the independent members of the Board of Reliance Energy some time in 2004 that REL’s exposure to these projects be restricted to 50 per cent, he clarified.Indeed, he added, the decision predates even that of the restructuring of Reliance Industries as part of a settlement among members of the Ambani family, the promoters of Reliance Industries and other group companies.
10 comments:
Hey
These are just rumours. How come no leading dailies have mentioned this if it is true?
Smart investors know who to believe. Seems like some one is jealous of Anil Ambani and is trying to spoil his name.
Bhavin .. I do wish that this just turns out to be a rumor. But so far REL spokemen have refused to comment on these issues. The above news have been reported in the online editions of a few dailies as well. We will come to know about the truth in a few days.
It seems evident that all this has been seeded by Mukesh group who does not want this IPO to take off.
I agree this is obviously the biggest IPO and thus has gathered interest of none other than him also.
We must understand that its not anil ambani who loses out when such a news comes out. its the retails investers who lose out.
Several merchant banking sources have denied there would be any delay in the Reliance Power issue.
Whatever you say this guy Anil is a superstar, he not only has turned the ventures he got from his brother he has quadrapled the value. Now this IPO, with so much growth happening in Indian Market, no wonder everything is news on TV channels and a sensational piece of information in newspapers. I am an investor myself in RADAG group and ventures and i have full faith that my money will grow once i invest when IPO will float. From what ever i hear of Mukhesh, doesnt sem to be a guy who you can trust, it really doesnt matter if he is the richest Indian etc etc...
I hope smart investors are aware that these baseless rumours are being floated by Anil Ambani's competitors.
The success of Anil's group of companies is not going down well with some high profile and so i guess they are using these cheap tactics to malign Anils name.
Maybe Anils competitors know that if the IPO starts it would be an instant success and would give all others a run for their money so they would be doing this bad-mouthing business to dampen REL reputation!
I hope smart investors are aware that these baseless rumours are being floated by Anil Ambani's competitors.
The success of Anil's group of companies is not going down well with some high profile and so i guess they are using these cheap tactics to malign Anils name.
Maybe Anils competitors know that if the IPO starts it would be an instant success and would give all others a run for their money so they would be doing this bad-mouthing business to dampen REL reputation!
I have to say some people have a lot of free time and resource to plan a rumour at such large scale. The IPO can be a huge threat to many companies and probably thats the reason why REL's competitors are plotting this fraud against Anil and his REL.
come on people… pls dont fall in the furry of these rumours. The IPO once started would be a great threat for all its other competitors, and hence they hav started to post such crap on the net to confuse the prospective investors in the IPO.
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