REL promoters to pick up stake in insurance cos

Mumbai: Promoters of Reliance Energy Ltd will pick up the quota meant for public sector insurance companies in the preferential offer, in the event the latter decline it. Life Insurance Corporation, New India Assurance, Oriental Insurance, General Insurance Corporation, National Insurance and United India Insurance which have been long-term shareholders of the company over the past several decades and who collectively hold approximately 18 per cent of equity have been given the preferential offer by the board of REL. The company is mopping up Rs 8,000 crore as fresh equity for several mega projects under implementation. The new equity capital will substantially enhance REL''s net worth and augment its borrowing capabilities. The company had also said that the proposed capital infusion will help REL rank among the 20 most valuable private sector companies in India in terms of all major financial parameters including assets, sales, net worth, profits and market capitalisation.