RIL slips as ACB reportedly files FIR on gas pricing issue

Reliance Industries fell 0.64% to Rs 812.25 at 09:43 IST on BSE on reports that the Anti-Corruption Bureau of the Delhi state government has registered a FIR on Chief Minister Arvind Kejriwal's complaint on gas pricing.

Meanwhile, the BSE Sensex was down 3.75 points, or 0.02%, to 20,440.20

On BSE, so far 30,585 shares were traded in the counter, compared with an average volume of 2.62 lakh shares in the past one quarter.

The stock hit a high of Rs 818.75 and a low of Rs 809.35 so far during the day. The stock hit a 52-week high of Rs 927.90 on 19 July 2013. The stock hit a 52-week low of Rs 765 on 28 March 2013.

The stock had underperformed the market over the past one month till 12 February 2014, falling 4.6% compared with the Sensex's 1.49% fall. The scrip had also underperformed the market in past one quarter, sliding 4.08% as against Sensex's 0.82% rise.

The large-cap company has an equity capital of Rs 3231.67 crore. Face value per share is Rs 10.

Reports suggested that the Anti-Corruption Bureau of the Delhi state government has registered a First Information Report (FIR) on Chief Minister Arvind Kejriwal's complaint on gas pricing. No individual has been named in the FIR even as Kejriwal's complaint mentioned Reliance Industries (RIL) Chairman Mukesh Ambani and Union Minister Murli Deora and Verappa Moily. The FIR has been registered under sections dealing with criminal conspiracy, cheating and other sections of the Prevention of Corruption Act, reports added. Kejriwal had on Tuesday, 11 February 2014, called for an investigation into what he alleged was collusion between government policymakers and RIL in a plan to raise natural gas prices this year.

Shares of RIL had gained 1.48% to settle at Rs 817.45 on Wednesday, 12 February 2014 after the company in a media statement issued after market hours on Tuesday, 11 February 2013 said that direction of the Delhi Government to order the registration of an FIR in relation to the decision of Union Cabinet to revise the price of gas is indeed shocking. The complaint and each of the allegations on the basis of which the Delhi Government has taken such action are completely baseless and devoid of any merit or substance whatsoever. The allegations appear to have been made by persons who are also Petitioners in the Supreme Court of India in a petition in which similar allegations have been made. The issue of gas pricing is also a contentious issue between the contracting parties being the Government of India and the Contractors.

We deny these irresponsible allegations and propose to resort to the available legal remedies to protect our reputation and preserve the pioneering efforts and investment made by Reliance so far. We also remain fully committed to the development of oil and gas sector in India within the parameters of law, RIL said in a statement.

Delhi's chief minister Arvind Kejriwal reportedly said on Tuesday, 11 February 2014 he has asked for an investigation to be launched into Reliance Industries' (RIL) Chairman Mukesh Ambani and policymakers over pricing of gas produced from the D6 block in the east coast. The RIL stock had slipped 1.96% to settle at Rs 805.50 on Tuesday, 11 February 2014.

"Today we have instructed the anti-corruption branch to file a criminal case against Murli Deora, FIRs against Veerappa Moily, V.K. Sibal, the (then) director general of hydrocarbons, Reliance Industries Chairman Mukesh Ambani and others," Kejriwal told a press conference on Tuesday, 11 February 2014.

A FIR, or First Information Report, is the first stage of an official investigation into a complaint. Reliance had initially agreed to supply gas to utility NTPC at about $2.3 per million British thermal units (mBtu) for about 17 years, Kejriwal said.

But price of gas from the D6 block was fixed at $4.2 per mBtu when Deora was oil minister.

Last year, after Moily took over as oil minister, the federal government agreed to link prices with global indexes, which could double the local gas prices from April 1 this year. Kejriwal said he would ask the federal government to suspend the latest order on gas pricing pending an inquiry.

RIL's net profit rose 0.2% to Rs 5511 crore on 10.3% growth in net sales to Rs 103521 crore in Q3 December 2013 over Q3 December 2012.

RIL's gross refining margin (GRM) declined to $7.6 per barrel from $7.7 per barrel in Q2 September 2013 and $9.6 per barrel in Q3 December 2012.

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.

Powered by Capital Market - Live News