Shares of Reliance Power Ltd. and Reliance Infrastructure Ltd., both headed by Anil Ambani, may witness price action after the companies revealed plans to alter the shareholding status of their key stakeholders. The reclassification move involves Group Chairman Anil Ambani and his son Jai Anmol Ambani stepping down from their "promoter" roles.
On Friday, the companies disclosed that Anil Ambani and Jai Anmol, currently classified as part of the promoter and promoter group respectively, have submitted applications to reclassify their status as "public shareholders."
The boards of both Reliance Power and Infra have reviewed and approved these applications, which were deemed compliant with Regulation 31A of SEBI's Listing Regulations.
Current Shareholding Details
As per the latest September 2024 data:
In Reliance Infra, Anil Ambani holds 1,39,437 shares, while Jai Anmol owns 1,25,231 shares.
In Reliance Power, Anil Ambani holds 4,65,792 shares, and Jai Anmol has 4,17,439 shares.
Regulatory Compliance And Next Steps
The companies have sought approvals from the Bombay Stock Exchange and the National Stock Exchange of India for the reclassification. Both entities emphasised that the reclassification aligns with legal requirements.
Under SEBI norms, for promoters to be reclassified as public shareholders, their total voting rights must not exceed 10% of the company's equity.
In 2024, a SEBI-appointed panel had debated relaxing this threshold, suggesting it be raised to 25%. However, the proposal was rejected, leaving the current 10% rule unchanged.
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