Anil Ambani family gradually lowered stake in group companies

Move leaves lenders and shareholders with dud shares

The promoter’s stake in the listed companies of Anil Dhirubhai Ambani Group fell steadily over the years as lenders started invoking the pledged shares following loan defaults.

Promoter stake in Reliance Infrastructure (Rinfra) fell to 5 per cent as of September-end this year (Q2FY22), from 48.4 per cent in March 2018, shows data.

Rinfra’s stake in its subsidiary Reliance Power fell to 25 per cent in Q2FY22, from 75 per cent in March 2018.

The promoters — the Anil Ambani family — have agreed to infuse ~550 crore into Rinfra by way of a preferential allotment of shares, thus increasing their stake in the company to 25 per cent once the offer is completed.

Rinfra, in turn, will increase its stake in Reliance Power to 38 per cent after its warrants are converted. Ambani’s stake in Rinfra declined after the lenders invoked the pledged shares and sold them in the market. Data shows 72 per cent stake is held by retail investors and HNIS.

In Reliance Capital, whose board was recently superseded by the RBI, promoter stake had fallen to 1.5 per cent in Q2, from 52 per cent as of March 2018.

With the RBI action, it’s the public shareholders — who are now holding 85 per cent of the shares — who will lose out.

Two other firms facing insolvency — Reliance Communications (Rcom) and Reliance Naval — also saw a steady decline in promoter stake as their financial metrics declined.

The bankruptcy process of Rcom is pending while lenders are in the final stages of deciding on the highest bidder for Rnaval.