Just saw Live Coverage on TV of Anil Ambani addressing his ‘Share Owners’ at the Reliance Capital AGM this morning
Imagine a serious looking Gentleman presenting some very good looking Group and Company and Business Potential Statistics in a dull,monotone…that’s what I felt Anil Ambani was doing this morning
Dressed in a Black Suit and even a Dark (Black?) Tie probably reflected his subdued and sombre look…looked as if he has not slept well last night….There was not even a flicker of a smile and he was lacking his usual confident and aggressively positive demeanour…..There was a person who created a mild sloganeering disturbance as Anil spoke,but was quickly whisked away from the Indoor Auditorium.
2008 and 2009 so far have been challenging years for Anil Ambani….His Reliance Power issue in Feb 2008 took Rs 427.50/share from Retail alottees and a face saving bonus dropped the holding Price to just over Rs 267…The share had listed marginally positive ,but then the decline began and the holding price has yet to be reached again…It’s currently Rs 168 levels…and yesterday in the continuing RIL v/s RNRL war for the former not honouring the MOU between the Ambani Brothers for supplying 28 mmtu of Gas daily from the KG basin to the latter ,the Supreme Court allowed rival brother’s RIL to continue it’s Gas Sales to third Parties as per the Jan 2009 agreements
Anil Ambani desperately needs his woo his shareholders to stay with his Group….and so now we have the personal touch….Addressing Shareholders as ‘Share Owners’….His ‘Share Owners’ would have appreciated more if he had only priced his Reliance Power Issue below Rs 200 and not at Rs 427.50….Maybe Anil,you can make amends by issuing Reliance Life Insurance at Par to the original allottees,who yet hold the shares, of Reliance Power !
Another interesting part of the AGM Address was Anil’s revelation that they are planning to unlock value for shareholders of Reliance Capital by going for an IPO or a strategic Investor sale or a combination of both of the wholly owned subsidiary,Reliance Life Insurance Ltd….Some value of this Insurance Subsidiary is already embedded in the Current Share Price of Rs 890 of Reliance Capital…last Three Months,the share Price has surged by over 70% from levels of Rs 500
Some very Interesting Points from Anil Ambani’s Presentation are below