RCVL listing- History repeats itself
Mumbai, Mar 06: The History was repeated again on the Bombay Stock Exchange (BSE) today (Mar 06, 2006) as Reliance Communications Venture Limited (RCVL) made its maiden listing at Rs 290 with the ringing of ceremonial bell at 0954 hrs by Chairman Anil Ambani, the son of Reliance Group founder late Dhirubhai Ambani.
Dhirubhai, a pioneer in popularising the equity cult in the country, had made a similar maiden entry into the capital when he went ahead with the listing of Reliance Industries Limited (RIL) on 23rd January, 1978, accompanied by his sons--Mukesh and Anil.
Today, Anil also revisited the same path when he entered into the historic hall with his mother and Dhirubhai's wife Kokilaben and wife Tina to list the RCVL on BSE.
''RCVL is a new Reliance family'', Anil said in his opening remarks just before the listing.
Immediately after opening, its shares spurted on a good demand to touch Rs 309. At NSE, the scrip opened at Rs 298 and touched a high of Rs 307 a share within minutes.
In less than five minutes of opening over one crore shares of the company were traded at the two exchanges, demonstrating wider acceptability of the company and ADAG whose market capitalisation before the listing was pegged at Rs 53,000 crore.
The opening of RCVL was with a market capitalisation of Rs 36,450 crore.
Recalling his family history, Anil said, RIL issue was launched in January 1978 just before and after the listing of shares of mega MNCs Hindustan Lever Limited and Indersoil Rand.
''My father did not bother about the big players and went ahead with the listing to mop up over Rs 800 crore with an enrollment of 55,000 shareholders,'' he said.
In his emotional speech, Anil said, ''My mother had been the force behind the success of my father, some even said hidden force. Now she is the force behind the success of myself and my elder brother Mukesh in creating two independent Reliance groups. We will gain strentgh to strength and create world-class assets for prosperity of our shareholders.''
Earlier, in his interaction with broking fraternity and analysts, he expressed his keenness to hike foreign direct investment in the Reliance Communication Ventures upto 74 per cent to attract global investors. Anil said that ''we would be keen to hike FDI... A mechanism would be in place after two to three weeks of listing.''
RCVL, earlier this month sought approval of the shareholders through postal ballot for increase in the FDI upto 74 per cent by the month end, presently has foreign holding of 32 per cent just behind promoters stake of 37 per cent.
The purpose of increasing the foreign investment was to attract investors from across the globe, he said and over 250 brokers as part of preparing for the listing of the company started trading today.
In the presentation, Anil compared his telecom operations with Bharati and Tatas on a number of parameters to explain that performance of RCVL as also the networking and international traffic was higher than the competitors.
Claiming that Reliance Anil Dhirubhai Ambani Group was among the top three business houses in the country, Anil exuded confidence that the group's market capitalisation would improve significantly from over Rs 53,000 crore now after listing of Reliance Capital Ventures (RCVL).
According to a market analyst, had the FIIs limit of investment been higher, the RCVL listing would have seen a much higher peak than today's opening prices.
Nimesh Kampani of Morgan Stanley India Ltd, observed that RCVL shares would be closely tracked and compared with the Bharti Televentures and very soon it would catch up with its prices.
Bharti shares are presently traded above Rs 400 per share now.
In a tele-video address, Microsoft Corporation CEO Steve Ballmer said that his company and Reliance Communictions were working together to deliver next generation mobile based television services and make the TV viewing experiences better and more personalised.
''We look forward to working with Reliance Communications to bring this exciting technology to consumers across India,'' he added.
In his message, Cisco Systems President and CEO John Chambers said that Cisco and Reliance were working very closely in terms of providing the next generation infrastructure as converged services come together in a world class means.
''We look forward to continuing our relationship with Reliance and taking it to the next level'', he added.
RCVL lists at Rs 290 on BSE, at Rs 298 on NSE