Thursday, August 4 2005 12:34 Hrs (IST) - World Time -

New Delhi: ADA Enterprises Chairman Anil Ambani today (August 4, 2005) described as 'mega bonus' the distribution of shares of his companies among 23 lakh shareholders of Mukesh-controlled Reliance Industries.

"The free distribution of shares of the companies of ADA Enterprises comprising Reliance Infocomm, Reliance Energy and Reliance Capital is a mega bonus issue for the 23 lakh shareholders of Reliance Industries Limited (RIL)," Anil Ambani told PTI.

Reminding of his father's legacy, he said, "This is a fulfillment of the commitment made by my late father, Dhirubhai Ambani, to consider a liberal bonus offer during his last EGM."

RIL's founder Chairman had suggested in 2002 EGM of the company that a liberal bonus offering should be considered for the shareholders.

At the current prices, Reliance Captial has a market capitalisation of about Rs 10,000 crore and Reliance Energy at about Rs 12,500 crore.

At the conversion rate of Rs 32 a share by RIL for its Rs 8,100 crore preferential issue, the valuation of Reliance Infocomm works out to Rs 28,000 crore.

In his presentation yesterday (August 4, 2005), Anil had said the ADA Enterprises would have over 70 lakh shareholders after the completion of structuring process of the organisation. This would make ADAE to have the largest shareholder base in the world.

Soon after Mukesh announced the demerger, Anil had said Reliance Infcomm would give a bonanza of at least Rs 10,000 crore to the existing RIL shareholders in terms of value creation.

Anil had also announced creation of two new companies, Global Fuel Management Services and Reliance Communication Ventures in which ADA Enterprises would own 37 per cent stake each.

As per the demerger, RIL shareholders would get a bouquet of Anil's companies shares on a proportionate basis.

Anil had yesterday (August 4, 2005) announced that for every 100 shares of RIL, holders would get 100 shares of new company Global Fuel Management Services, an entity that would buy gas from RIL.

For every 100 share of RIL, holder would get 100 shares of Anil's second new company Reliance Communication Ventures, a holding company proposed for Reliance Infocomm, Reliance Telecom, Reliance Communications and FLAG.

The two new companies are set to enter stock markets by March 2006.

Likewise, for every 100 shares of RIL, holders would get five shares of Reliance Capital and seven shares of Reliance Energy.

RIL's shares in Reliance Capital and Reliance Energy would be transferred to two new Special Purpose Vehicles, which would be subsequently merged with Reliance Capital and Reliance Energy.

After the share-swap, ADA Enterprise would hold 50.5 per cent in Reliance Capital and 28.4 per cent in Reliance Energy.