RNRL, Reliance Power to consider merger on July 4

The boards of directors of Reliance Natural Resources Ltd. (RNRL) and Reliance Power Ltd. will meet on July 4, to consider a merger of the two anil dhirubhai ambani group (ADAG) companies. Earlier, media reports had suggested that RNRL and Reliance Power could merge, sending the shares of the two companies higher. The announcement is significant as it comes close on the heels of the two Ambani siblings rescinding a long-standing non-compete agreement, allowing them to expand into each other's sectors.

Also, last week Reliance Industries Ltd. (RIL) and RNRL signed a new gas supply master agreement (GSMA) pursuant to the judgment of the Supreme Court, dated May 7. RNRL said that it would now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same. The price, quantity and the tenure of the natural gas to be supplied by RIL to RNRL from its KG basin block will be decided by the Government. However, some reports suggest that the new GSMA between the two companies entails supply of 28 mmscmd natural gas for 17 years at US$4.20 per mmbtu. RIL said that the GSMA is compliant with the Gas Utilization Policy and EGoM decisions.

Reliance Capital to buy 18 percent stake in Bloomberg UTV

Reliance Capital, part of the Anil Dhirubhai Ambani Group, Wednesday said it will acquire an 18 percent interest in business channel Bloomberg UTV.
''The investment will form part of Reliance Capital's exposure to the fast growing and high potential in the Indian media sector,'' the company said in a statement.

After the transfer of stake, Bloomberg will own 15 percent in the company and the balance 67 percent will be controlled by the UTV founders, led by Ronnie Screwvala.

Formed in October 2009, Bloomberg UTV is a major contender in India's media space, seeking to present business news in a refreshingly different and clear perspective.

It claims a clear Number Two position in India's top eight metros.

Reliance Capital already has a stake in the Network 18 Group that runs CNBC, CNN-IBN, IBN 7, Colors and Awaaz channels.

It also holds a stake in the TV Today network, which operates Aaj Tak and Headlines Today news channels.

R Power commences power generation from Unit II of Rosa Power Project

Reliance Power Ltd has commenced power generation from Unit II of its Rosa power plant, in Uttar Pradesh. Rosa Stage 2 is a coal based project with two units of 300 MW each. The 300 MW project has also been synchronized to the UP State grid.

Rosa Power Supply Company Limited (RPSCL), a fully owned subsidiary of Reliance Power is developing 1,200 MW of coal based generation capacity at Rosa village in two stages of 600 MW each. Unit I of Rosa power plant has been operational since December, when it had been synchronized to the UP State grid.

Reliance Power Limited is quoting at CMP of Rs 176.50. The stock has made an intraday high of Rs 177.75 and low of Rs 173.10 at NSE. Total traded quantity at NSE for Reliance Power Limited at 15:02 IST is 6063539.

Reliance Power Limited, a part of the Reliance Anil Dhirubhai Ambani Group is established to develop, construct and operate power projects domestically and internationally. On its own and through subsidiaries, it is currently developing 16 large and medium sized power projects, one of the largest portfolios of power generation assets under development in India. They include seven coal-fired projects, two gas-fired projects, and seven hydroelectric projects.

Unlimited mobile internet plans from Rcomm

Reliance Communication, today announced that it will launch unlimited internet plan at just Rs 99 per month for mobile users. It is the part of their plans to launch 3G services in India.  Reliance communication has bagged the 3G spectrum in 13 circles for Rs 8,585.04 crore including in the most coveted Delhi and Mumbai service areas.

Last week, India’s second-largest wireless carrier said it may sell a 26% stake to help pay debt and upgrade networks, valued at 94.8 billion rupees ($2 billion) to a strategic or private- equity investor.

On Monday, the company decided to separate tower business of its telecom arm Rcomm to create an independent firm, saying it was in advanced stage of talks for stake sale in the new entity.

Reliance communication today closed at Rs 185.80 down by 0.54% from its previous close. The stock hit a high of Rs 194.55 and a low of Rs 183.50 during the day.

ADAG stocks on the list of highest gainers today

Anil Dhirubhai Ambani Group stocks rose 3.62% to 17.83% following the Ambani brothers' recent agreement to dump their differences and non-compete agreements. 

 The stocks closed in the following manner:

·         Reliance Natural Resources (RNRL) - 17.83%

·         Reliance Media Works - 12.25%

·         Reliance Capital - 6.31%

·         Reliance Infrastructure - 4.23

·         Reliance Power - 6.88%

·         Reliance Communications - 3.62%

Last month, the two Ambani brothers ended non-compete agreements in a move they hoped would lead to co-operation between the two groups. Mukesh and Anil Ambani decided to end agreements preventing them from investing in industries where the other was present and pledged to work together in an atmosphere of harmony.

The agreement scrapped a non-compete pact that had prevented Mukesh from sectors such as power, telecom and financial services and had kept Anil Dhirubhai Ambani group (ADAG) away from refining and petrochemicals.

BSE Sensex closed 273 points up at 17338 today.