Ambanis Not To Ask For Berths On Bses Board

The Ambanis are unlikely to press for berths on the BSES board for any member of the family once its open offer for power major is through.

Although Reliance does not have any member on the board, it will have the right to ask for board nominations after the open offer. BSES now has an eight-member board.

Already, Reliance is the single- largest shareholder group in BSES with a 14.82 per cent holding and, if the 20 per cent open offer is fully subscribed, its stake will rise further to 34.82 per cent, while the total holding of financial institutions is 35 per cent. However, it may decline if any of the institutions decide to sell out.

 

However, sources close to the financial institutions said Reliance may ask for induction of its nominees on the BSES board.

It is believed that some preliminary discussions on this issue has already taken place between Reliance and the institutions, but a Reliance spokesperson declined to comment on the issue.

Institutional sources said Reliance intends to keep the nature of the BSES board similar to that of Reliance Power and Reliance Telecom, which are headed by V K Syngal, former chairman of VSNL, and DV Kapoor, respectively.