In terms of value creation for Reliance shareholders, it is clearly a positive one and we estimate sustained further upside as the company-wise performances pan out, following crystallisation of all the demerger details.
I have no doubt that all the entities carved out will individually emulate the success parameters set by Reliance Industries Limited, in their respective core business areas like power, petroleum, telecom, etc. Shareholders who were initially perturbed about the tussle between the Ambani brothers but stuck through with Reliance, will now reap handsome peace dividends.
By March 2006, all regulatory and court approvals should, hopefully, come through. Consequently, the next fiscal will truly be an interesting one for the equity markets, with all the Reliance group companies having gotten listed on the stock exchanges, thus providing an opportunity to investors multiple opt-ions to bite into the Reliance growth story.
As the adage goes, Alls well that ends well. And markets, analysts, in-vestors and bankers would seek ringside seats to watch the number play of the twin empires, given that RIL alone accounts for 3.5% of Indias GDP.
The writer is managing director and chief executive officer, ICICI Securities Ltd.