Feb 26 2007
The Board of Directors of the Company met today and took the following decisions:
- Confirm the decision taken on 9th November, 2006 to raise US $2 billion to finance the capital expenditure plan for oil and gas business through External Commercial Borrowings by way of debt.
- Raise further equity by way of preferential issue of 12 crore warrants exercisable into equal number of equity shares of Rs.10 each of the Company to the Promoters as per SEBI guidelines for Preferential Issues, subject to shareholders approval. An amount equivalent to 10% of the price would be paid on allotment of warrants and the remaining 90% would be paid at the time of subscription to equity shares on exercise of rights attached to the warrants within a period of 18 months. On exercise of such rights the paid up capital of the Company will increase from Rs 1393 crores to Rs 1513 crores.
- Build one of the largest integrated cracker and petrochemicals complex with a total capacity of 2 mmtpa in the SEZ at Jamnagar. This cracker will use refinery off gases and other byproducts as feedstock to manufacture ethylene, propylene and its downstream commodity and speciality derivatives. The proposed facility will be built at a capital cost of US $ 3 billion and is expected to go on stream by 2010 -11. This unique integration with the refinery will place the proposed cracker complex at par with the most efficient producers of olefins and derivatives in the world including those in the Middle East and will enable the Company to achieve one of the most competitive cost positions.
- Appoint Dr. R.A. Mashelkar as an independent director on the Company’s board, subject to necessary Government approvals.
Dr. Mashelkar is an eminent scientist and engineer and has an outstanding academic record and has held several high positions in the field of Science and Technology. Dr. Mashelkar is presently the President of the Indian National Science Academy (INSA) and President of Global Research Alliance, a network of publicly funded R&D institute from Asia Pacific, Europe & U.S.A. with over 60,000 scientists. Dr. Mashelkar was awarded the Padmashri in Commenting on the above, Chairman, Mr. Mukesh Ambani said “The Board’s approval to enhance the equity capital of the Company by Preferential issue of warrants to promoters demonstrates our commitment to value creation at Reliance.
The substantial enhancement of shareholders funds will take RIL to a higher growth platform by strengthening its capital structure. I am really excited about accelerating our investments in all our key businesses – oil & gas, refining, petrochemicals and retailing by both organic and inorganic growth initiatives.”