RPower concludes RNRL share swap

Anil Ambani-led Reliance Power today said it has concluded the allotment of equity shares to shareholders of group company Reliance Natural Resources Ltd (RNRL), as per their merger agreement.

RPower allotted equity shares to shareholders of RNRL in accordance with the composite scheme of arrangement, the company said in a statement.

According to the scheme of arrangement, RPower has alloted one equity share of Rs 10 face value in exchange for four RNRL equity shares of Rs 5 face value each.

The move comes after the Bombay High Court last month approved the merger of both entities.

The share exchange ratio was based on the recommendations of leading international consulting firm, KPMG.

RNRL has become a wholly-owned subsidiary of RPower and its shares ceased to be tradable on the stock markets with effect from November 9, 2010.

The merger would result in RPower becoming the world's largest shareholder family, with around 5 million members, compared to about 3.5 million at present.

Nod for Jharkhand power project
In a boost to RPower’s estimated Rs 20,000-crore project in Jharkhand, the government has granted initial clearances for mining coal from reserves allocated to it in the state and feed its proposed mega venture. The company is understood to have obtained the initial environment clearance and has begun the land acquisition process for developing the mines, which have estimated coal reserves of 1.2 billion tonnes allotted for the Ultra Mega Power Project in Hazaribagh district of Jharkhand.