Mukesh Ambani's stake hike in Reliance only representational: Kotak Securities
Kotak said RIL transferred the treasury shares held by its subsidiaries to Reliance Services and Holdings.
RIL in an exchange filing had said that Mukesh Ambani’s stake in Reliance Industries increased to 48.87 per cent. Ambani and his private firms held 47.29 per cent stake as on June 30, 2019 in India’s second-most valuable company.
Reliance Services and Holdings, a private firm of Mukesh Ambani on Tuesday said that it has acquired 2.71 per cent stake, or 17.19 crore shares, on September 13, 2019 pursuant to a scheme of arrangements.
Kotak said RIL transferred the treasury shares held by its wholly-owned subsidiaries to Reliance Services and Holdings, which is an entity wholly controlled by Petroleum Trust and RIL is 100 per cent beneficiary of the same.
The shareholding representation on BSE always included Petroleum Trust as part of the promoter group, while including the treasury shares held by wholly-owned subsidiaries in non-promoter non-institutions category.
Hence, the promoter shareholding has increased only from a representation purpose pursuant to this transfer and not changed effectively; it remains at 45.3 per cent, excluding all treasury shares, Kotak said. Voting rights including all treasury shares, now being held under Petroleum Trust, have increased to 48.9 per cent.