Reliance hypes آ‘real valueآ’ of Panna, Mukta, Tapti

Vol 3, PW 17 (15 Sep 99) News in Brief

Is Reliance Industries trying to boost its share price on the Bombay Stock Exchange On 8th September, the Press Trust of India news agency reported unattributed claims by a company official that the real value of Reliances stake in the Panna, Mukta and Tapti oil and gasfields in the Bombay Offshore is close to $1bn - five times the $200m share of capital expenditure listed in the joint venture balance sheet.

Reliance has a 30% stake in an unincorporated joint venture with Enron Oil & Gas and ONGC for production of oil and gas for a period of 25 years. The official states that this is equivalent to between Rs40-50 ($1.20) which is not factored into the companys share price.

The unquoted official also hypes Reliances equity stake in Larsen & Toubro and Bombays BSES electricity company as hidden value not yet factored into the companys share price. Reliance shares presently stand at around Rs190.

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