Simultaneously, the Indian financial institutions comprising UTI, LIC and GIC have also hiked their combined holding by 2 per cent at 38.39 per cent from 36.39 per cent.

BSES chairman and managing director confirmed these recent developments while talking to The Financial Express and said that the company continues to be one of the professionally run companies.

It must be mentioned here that the RIL had increased its holding from 14.82 per cent to 26.68 per cent in July last year and thereafter had sought the nomination of two directors on the BSES board. Reliance Power's vice president SC Gupta and Satish Sheth have started functioning at the board since November last year. Infact, Mr Sheth has been heading a task force appointed at the BSES.

Although, the RIL had tried its best for acquiring majority holding, the FIs had stepped in and increased their combined holding from 35.91 per cent to 36.39 per cent in July 2000.

With the acquisition of additional 1.5 per cent stakes by RIL and 2 per cent by FIs, the shareholding pattern of the BSES is as follows : Indian FIs - 38.39 per cent, Reliance - 28.18 per cent, FIIs - 15.80 per cent, GDR holders - 9.94 per cent, Mutual Funds - 0.85 per cent, Banks -0.54 per cent, Overseas Corporate bodies (OCB's) and NRIs -0.41 per cent.

RIL, also made an open offer in May last year, to acquire a 20 per cent stake in BSES at Rs 234 per share with an estimated outgo of Rs 650 crore. BSES had turned down the offer on the grounds that the open offer price of Rs 234 per share was low.

Although, the RIL had later increased its open offer price to Rs 255 per share, the deal could not be struck even thereafter. The Reliance had proposed to gain controlling stake in BSES, basically to help leverage the synergies in the telecom and internet sectors as well as in the power sector.The net profit of BSES, which is involved in a legal battle with the Tata Power on the payment of stand-by charges, had decreased by 4.97 per cent at Rs 71.87 crore for the quarter ended December 31, 2000 against Rs 80.89 crore. The company had attributed the decline to higher cost incurred in the purchase of power from bulk supplier.