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.

RIL plunges 20% in freak trade

The BSE index plunged over 600 points, when shares of the most valued firm RIL tanked 20 per cent due to a faux pas over ICICI Bank share quotation. Shares of RIL finally settled at Rs 1,011.55, down 3.21 per cent on the Bombay Stock Exchange. According to marketmen, the freak sale happened after some trader off-loaded the company's stocks at an unbelievable level of Rs 840.55 against yesterday's close of Rs 1,045.05. According to marketmen, a trader sold about 62,000 shares of RIL at Rs 840.55 per share, while the sale order was meant for ICICI Bank. The transaction pulled RIL down to its 52-week low. Looks like there has been a freak trade, Bombay Stock Exchange spokesperson Kalyan Bose said. However, trade in National Stock Exchange was free of this fluctuation. RIL closed at Rs 1,009.80, down 3.42 per cent on NSE. Since RIL carries the most weight among the Sensex stocks, the index had fallen over 600 points at one point of time. The BSE benchmark index today settled down 372.60 points or 2.20 per cent at 16,572.03.