We know LIC is flush with insurance funds in March and LIC looks for good bargains for a long term period. On 11th March, LIC acquired 14% equity in Reliance Infrastructure. This should be seen as a big vote for the growth potential and attractive valuation of Reliance Infrastructure.
Reliance Infrastructure is a star performer of the ADA Group with a top quality management and strong projects pipeline in different sectors: Power Generation, Transmission, and Distribution, and Transporation (Metro Rails and Bridges) and Roads.
Our Advice: Reliance Infrastructure is one of the best quality stocks in India today, with very attractive valuation (under P/E 10 after removing its Reliance Power investment stake). Buy and Hold for 5 years for market best returns.
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RNS Number : 7297I
Reliance Infrastructure Limited
17 March 2010
Sub.:Disclosure under Regulation 7 (3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997
Pursuant to the intimation received from Life Insurance Corporation of India, we enclose herewith disclosure as required under Regulation 7(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, being acquisition of more than 14% equity shares of the Company by Life Insurance Corporation of India.
Kindly take the same on record.
This is for your information.
Yours faithfully
For Reliance Infrastructure Limited
Ramesh Shenoy
Company Secretary
FORMAT FOR DISCLOSURE OF DETAILS OF ACQUISITION TO
STOCK EXCHANGES BY TARGET COMPANY, IN TERMS
OF REGULATION 7(3) OF SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS)
REGULATIONS, 1997
+-------------------------------+--------------+--------------------+
| Name of the Target company | Reliance Infrastructure |
| | Limited |
+-------------------------------+-----------------------------------+
| Date of reporting | 17.03.2010 |
+-------------------------------+-----------------------------------+
| Names of the stock exchanges | (i) Bombay Stock Exchange |
| where the shares of the | Limited |
| target company are listed | (ii) The National Stock |
| | Exchange of India Ltd. |
| | |
+-------------------------------+-----------------------------------+
| Details of the acquisition/sale received in terms of Reg. |
| 7(1) and 7(1A) |
+-------------------------------------------------------------------+
| Names of the | Life Insurance Corporation |
| acquirers/sellers and PACs | of India |
| with them | |
+-------------------------------+-----------------------------------+
| Date of Acquisition/sale | 11.03.2010 |
| | |
+-------------------------------+-----------------------------------+
| Date of receipt of intimation | 11.03.2010 |
| of allotment by | |
| acquirer/seller | |
+-------------------------------+-----------------------------------+
| Mode of acquisition (e.g., | Open Market |
| open market / public issue / | |
| rights issue / preferential | |
| allotment / inter se transfer | |
| etc.) | |
+-------------------------------+-----------------------------------+
| Mode of sale (e.g., open | Not Applicable |
| market / MOU / off market | |
| etc.) | |
+-------------------------------+-----------------------------------+
| Particulars of acquisition / | Number | % w.r.t. total |
| sale | | paid-up capital of |
| | | Target Company |
+-------------------------------+--------------+--------------------+
| (a) Shares/Voting rights (VR) | 3,14,06,160 | 13.941547 |
| of the acquirer / seller | | |
| before acquisition/sale | | |
+-------------------------------+--------------+--------------------+
| (b) Shares/ voting rights | 1,34,540 | 0.059724 |
| acquired/sold | | |
+-------------------------------+--------------+--------------------+
| (c) Shares/VR of the | 3,15,40,700 | 14.001271 |
| acquirer/seller after | | |
| acquisition/sale | | |
+-------------------------------+--------------+--------------------+
| Paid-up capital/total voting | 22,52,70,262 equity shares |
| capital of the target company | of Rs 10 each aggregating Rs |
| before the said acquisition | 2,25,27,02,620 |
| | |
+-------------------------------+-----------------------------------+
| Paid-up capital/total voting | 22,52,70,262 equity shares |
| capital of the target company | of Rs 10 each aggregating Rs |
| after the said acquisition | 2,25,27,02,620 |
+-------------------------------+--------------+--------------------+
Note :
1. The disclosure shall be made within 7 days of receipt of information u/r
7(1) and 7(1A).
For Reliance Infrastructure Limited
Ramesh Shenoy
Company Secretary
Place : Mumbai
Date : 17.03.2010