View Profile

PART THREE OF MY LETTER---DR SAJAN

From : Sajan Mohammad at 12:12 PM - Feb 13, 2010 ( )

Total Views:


Share it on Facebook

WHY RNRL? 
On September 16th 2009 RIL planned to sell Rs 4,250 cr of treasury stock held through the PetroleumTrust, which is controlled by the promoters.The Trust has offered to sell about 20 million shares in RIL at RS 2,125 a piece.The promoters are looking to sell 10 million shares, with option to sell an additional 10 million shares that would fetch Rs 4,250 crore.
As on June 2009,the Trust held 104.7 million shares,or a 6.65% stake in RIL.Value of entire stake heldd by the Trust (@Rs2,183.5/ share) would be rs 22,861.25 crores.The secret weapon of RIL is that Mukesh Ambani can raise more than s 42,543 crore by selling treasury stock.This can be done WITHOUT DILUTING THE EQUITY
RNRL says that since the court has ratified its stand,why does it have to negotiate with RIL--RIL should be directed to supply it gas. RIL has also raised several issues--One, it says the MOU,on the basis of which the Bombay High Court gave its judgement,was signed by Mukesh Ambani in his personal capacity and was not binding upon RIL.Two, an agreement between two individuals cannot supercede govt.policy of allocating gas to different sectors and to fix the price of the gas.
The government had asked that the MOU between the @ brothers be struck down since a pvt. contract cannot possibly supercede govt. policy(of allocating gas to various users at an approved price).Later it modified this.For one,it said the full MOu didnot need to be struck down,only the part that pertained to the gas supply.it added, the Empowered group Of Ministers on gas policy had said it didnot apply to pre-existing contracts like RIL's one with NTPC(as the EGoM also said it didnot apply to RNRL,this will be argued hotly in the court.)
More arguments in the 4th part of my newsletter

Login to participate in discussion.

Disclaimer: The messages and ideas posted on this website are user's own views. Mudraa.com does not own any responsiblity for the information provided by the users.Data delayed 15 to 20 minutes unless otherwise indicated.