RIL reaffirms investment commitment to Infocomm
Monday, December 27 2004 18:38 Hrs (IST) - World Time - 
Mumbai:
The board of Reliance Industries Ltd (RIL) today (Dec 27, 2004) reaffirmed its commitment to be the lead investor in Reliance Infocomm Ltd (RIC) with a 45 per cent stake, while its business would be conducted through both RIC and Reliance Communications Infrastructure Ltd (RCIL).
The RIC initiative would be implemented through two separate companies - RIC for voice business and RCIL for infrastructure and data business, with RCIL holding 77.29 per cent of RIC's equity capital, RIL said in a release in Mumbai after the board meeting today.
Spotlight: Battle of Ambanis -- Will they stick or split?
RIL's effective holding in the company would be 42.35 per cent, it said.
On the investment of Rs 12,062.50 crore in RIC, the release said it comprised 45 per of equity capital in RCIL (of Rs 2,331 crore), 7.57 per cent of equity capital in RIC (Rs
31.50 crore), deep discount bonds of RCIL (Rs 1,600 crore) and cumulative convertible/redeemable preference shares in RIC (Rs 8,100 crore), it said.
Discuss this topic
The deep discount bonds are redeemable in September 2011, with a put and call option every year from September 1, 2006 onwards, it said.
The board also endorsed the changes in names of RCIL and RIC from 200 onwards, citing these were necessitated by business exigencies, it added.
It also noted the annulment of Rs 50 crore shares of RIC by Mukesh Ambani and placed on record the position of receivables of Rs 3,426 crore of Smart Entrepreneurs Solution Pvt Ltd (an RIL subsidiary).
PTI
Related Stories
RIL Board reposes full faith in Mukesh Ambani
RIL constitutes Corporate Governance Committee
RIL approves buyback; first 'round' goes to Mukesh
| 
