Reliance board dials Infocomm initiatives

Anil Ambani had earlier raised several objections to RIL’s investments in the Infocomm business. Recently, Mukesh Ambani annulled his option to get 12 per cent sweat equity in RIC.

In addition, the board also decided to nominate Y.P. Trivedi and M.P. Modi, representing RIL, as independent directors on the respective boards of RCIL and RIC. These nominations were made based on an invitation by RCIL, which holds 77.29 per cent stake in Reliance Infocomm. RIL holds only 7.57 per cent direct stake in Infocomm. RIL’s effective holding in Infocomm is 42.35 per cent.

The RIL board put its rubber stamp on RIL’s following investments and steps in the Infocomm business:

• Committing to be the lead investor in the infocomm initiative with 45 per cent stake “consistent with the wishes of Dhirubhai Ambani, founder chairman of RIL.”

• Implementing the Infocomm initiative in two separate companies, Reliance Communications Infrastructure Ltd — for infrastructure and data business — and Reliance Infocomm Ltd (RIC) for the voice business.

• Investing in the Infocomm initiative by RIL, aggregating Rs 12,062.50 crore.

• Endorsing the changes in the names of RCIL/RIC from 2000.

• Noting the annulment of the exercise of the option by Mukesh Ambani with respect to Rs 50 crore shares of RIC.

The board also noted and placed on record the position of receivables of Rs 3,426 crore of Smart Entrepreneurs Solution Pvt Ltd, investment of Smart in ONGC and other IPOs from its own resources. RCIL has 100 per cent effective ownership of Smart, which has already received Rs 2,079 crore of its total receivables with the balance due over the next 20 months.