Reliance Industries (RIL) has issued 120m shares to its promoters at Rs1,402/share. The shares were issued on the exercise of options attached to the 120m warrants issued preferentially to the promoters in April 2007.
Prior to exercising the warrants, RIL management did some book adjustments on transferring shares held by various group companies as treasury stocks without any voting rights. [Some analysts are unhappy by the way RIL has done this adjustment – price at which group companies benefited the shares etc]
RIL’s outstanding shares are up to 1,574m shares. The promoter’s stake in RIL is now up to 42.4% from 37.6% after issue of 120m shares. Another 12.6% of treasury shares are controlled by RIL management and held for benefit of all shareholders. Including treasury shares the stake controlled by promoters is up to 54.99% from 51.28% before issue of 120m shares