Anil Ambani ups stake in REL

Anil Dhirubhai Ambani and other promoters of Reliance Energy on Monday consolidated their stake in the company by acquiring 4.3 crore (43 million) convertible warrants for nearly Rs 7,835 crore (Rs 78.35 billion).

Reliance Energy has issued 4.3 crore (43 million) warrants, convertible into an equal number of equity shares, to another group firm AAA Project Ventures Pvt Ltd. Upon conversion of the warrants, AAA Project Ventures' stake in Reliance Energy could increase to 52.22 per cent from the present 34.04 per cent.

"The Committee of Directors on January 20 has allotted 4,30,00,000 warrants, convertible into equivalent number of equity shares of the company of Rs 10 each, at a price of Rs 1,822.08 (including a premium of Rs 1,812.08) to AAA Project Ventures Pvt Ltd," REL said in a filing to the Bombay Stock Exchange.

The warrants would be convertible into equity shares at any time up to July 19, 2009, it added.

Shares of REL were trading at Rs 1,969.85 each, down 7.26 per cent, in afternoon trade on the Bombay Stock Exchange. REL holds a 51 per cent stake in Reliance Power, which is in the process of getting listed.