Reliance Communications Ventures Limited to have it all!

Reliance Communications Ventures to have it all!

The Reliance Anil Dhirubhai Ambani Group has announced their decision to consolidate all its telecom companies under a common shelter they call the Reliance Communications Ventures Ltd (RCVL). This company was just listed on the Indian stock exchanges last week.

This means that RCVL would be merged with the Reliance Infocomm and would also be converting the other three companies – Reliance Communications Infrastructure Ltd (RCIL), Reliance Telecom Ltd (RTL), and Flag Telecom – into 100% subsidiaries.

After this process is completed, the boss, Anil Ambani would own a majority share of 63% in the company, which is currently around 40%. This increase in his personal stake would be courtesy his group’s higher direct ownership in the other merging companies.

If we look at the current market prices of these companies, the estimated courtesy his group’s higher direct ownership in the other merging companies valuation of the consolidated entity will be around an astounding Rs 61,000 crore.