MUMBAI: Anil Ambani-led Reliance Power's board will on July 4 consider merging another group firm Reliance Natural Resources with itself. The statement was released after the close of stock market, but speculation about the deal pulled down the shares of both the companies sharply in the last minutes of trading.
Currently, the two stocks have market values in the ratio of about 1:3. The two companies together command a market capitalisation of Rs 50,000 crore (Rs 500 bilion).
While RNRL settled 2 per cent down at Rs 63.65 a share, R-Power managed to close 3 per cent up at Rs 174.50 a piece. In intra-day trade, R-Power had gained as much as 5%, but RNRL fell by over 7%.
Shares in Reliance Power, valued at $8.75 billion, closed up 3.3%, while Reliance Natural shares, with a market capitalisation of $2.3 billion, ended down 1.9% on Friday amid rampant market talk about a deal. The companies both announced a potential deal after the close of trading.
Currently, the two stocks have market values in the ratio of about 1:3. The two companies together command a market capitalisation of Rs 50,000 crore (Rs 500 bilion).
Market Review
The Indian markets closed with losses ending near the day's low amid volatile trade. The BSE Sensex closed at 17,460 down 48 points or 0.28 per cent and the NSE Nifty declined 14 points or 0.27 per cent to 5,237. The Nifty closed below its support of 5,254.
This week's performance was below average and the numbers are: Sensex down 0.7% and Nifty also down 0.7%. CNX Midcap index was up 0.6%, BSE Smallcap index up 1.2% over the week. BSE Realty index down 0.6%, BSE FMCG index up 0.3%, BSE IT index down 1.7%, BSE Oil & Gas index up 0.9% and BSE Bankex down 1%.
