/24-7PressRelease.com/ - New Delhi, India - May 14, 2005 - Leaving aside Reliance Infocom, which is still unlisted, RIL has seen an increase of 47 per cent in net profit during the fiscal 2004-5 to Rs 7,572 crores, a dividend increase of 22.5 per cent from 52.5 to 75 per cent. Cash earning per share (CEPS) of RIL was Rs 86.6 in 2004-5. True, the RIL stock is still considered undervalued compared to some other stocks in the market. The highly impressive overall performance of the company has gladdened the hearts of RIL shareholders, but they are still worried about the family squabble
Analyses of the salvos fired by Anil Ambani seem to be based on incorrect information. He opposed the share buy-back proposal, which was intended to shore up the price of the RIL stock. Instead, he advocated the issue of bonus shares, which would have further depressed the price of RIL stock. It would have greatly helped Anil Ambani to ask for maximum compensation for renouncing his shares in the flagship company as part of a final settlement.
Anil Ambani complained that some RIL shares meant for the benefit of general shareholders had been quietly usurped by some people in RIL. But it was later found that these shares were intact in a trust and were still available for the benefit of general shareholders.
Similarly, the issue raised by Mr. Jhunjhunwala regarding IPCL shares were found to be revenue neutral and that these shares were parked in RIL companies in anticipation of a settlement between the two brothers.
The feud has taken on Cervantesque shape with a lot of tilting at windmills. No real issues of mala fide action on the part of the RIL management have surfaced. Nor issues that could be construed to be against the interest of the shareholders. The three-member committee on corporate governance set up by the RIL board in January has rejected the various issues raised by Anil Ambani ? who, incidentally, was himself part of the RIL management when the so-called governance lapses took place!
Dipayan Mazumdar ia a media consultant
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