ADAG demands SEBI probe into negative campaign

New Delhi, Oct 24 (UNI) The Anil Ambani group today demanded a probe by the Securities and Exchange Board of India (SEBI) for a recent campaign against the company's forthcoming IPO in the power sector.

A statement by the company has said, ''A formal complaint has been filed with SEBI to investigate the disinformation campaign launched against Reliance Power IPO.'' The demand for probe comes a day after the company refuted allegations Reliance Energy Ltd('REL) Investors Forum' that the planned IPO of Reliance Power will erode the value for REL shareholders.

The statement added, ''The suspects behind the disinformation campaign too have been named in the complaint filed with SEBI.'' Reliance Power plans to come out with an IPO of 160 crore shares to part-finance 12 proposed power projects envisaging an estimated investment of nearly Rs 1,00,000 crore.

The REL investors forum in a statement had alleged that ''a close study of the Draft prospectus reveals that the Power Generation Business opportunities secured in the name of REL, a reliance group company and those secured with the strength of REL have been transferred to the said company RPL by means of some internal MoUs and understandings.'' The shareholders of REL have been deprived of the entire power generation business prospects to be accrued to them, it added.

By means of such a transfer of business and creation of another shell company to issue public shares, now the power generation profits will accrue to the new company REPL, in which Anil Ambani holds 50 per cent, it said.

The statement alleged that the new company has no resources at its command for executing these projects and instead is totally dependent on REL for entire support - be it technical, manpower, commissioning, even guarantees for raising finances.

UNI