Reliance Petro Gdr Not For Few Tocd Holders

A section of Reliance Petroleum's (RPL) triple-option convertible debenture (TOCD) holders will not get the opportunity to participate in the company's proposed global depository receipt (GDR) issue.

The TOCD holders will comprise 9.2 per cent of RPL's fully-diluted share capital when the attached warrants are converted, of which 3.2 per cent is owned by promoter company Reliance Industries and the balance 6 per cent by retail investors.

RPL has given the option to its shareholders to put up their shares in an escrow account by June 2, it said in a press release, while the attached warrants with the TOCDs will be converted only in July, its annual report says.

For the retail investors, the warrants are convertible at Rs 15 each, while for RIL they are convertible at Rs 20 each.

A Reliance spokesperson said, "Going by the profile of RPL shareholders, they are typically long-term shareholders. Given the returns of 248 per cent over the last 5 years, or 180 per cent over the last two, we expect them to stay on with the company."

The shareholders, if participating in the offering, will get locked in with the company till March 31, 2002, or completion of all tranches of the proposed offering, whichever is earlier.

Morgan Stanley Dean Witter and Deutsche Bank have received the mandate to become the lead managers for the company's global depositary receipt (GDR) issue.

Through the GDR/ADR option, Reliance Industries is looking at offloading upto 13 per cent of its 64 per cent stake. Going by the current market price, the 13 per cent stake offloading could bring in close to Rs 3,600 crore to the company.

Based on the current market price of the RPL share, the unrealised capital gains on Reliance Industries' 64 per cent shareholding in RPL is over Rs 11,000 crore.