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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (8642)	10/20/1999 1:43:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

More or Reliance Petroleum Ltd ADR/GDR listing Reliance Petro gets NYSE symbol RPL gets NYSE symbol, may turn GDRs into ADRs The son seems to be following his father's footsteps. Close on the heels of its parent, Reliance Petroleum Ltd has been allotted the trading symbol 'RPL' on the world's largest bourse - the New York Stock Exchange. The company is also believed to be toying with the idea of converting its global depository receipts into more liquid American depository receipts. The NYSE symbol comes even as the new refinery listed its GDRs - which were created through the conversion of $100 million in foreign currency convertible bonds outstanding on the books of the company - on the Luxembourg Stock Exchange (LxSE) on Monday. The GDRs have been listed at $23 per GDR (Rs.998). This works out to a 23 per cent premium over the domestic share price of RPL, as each GDR comprises of 15 underlying shares of the company. The RPL scrip is currently quoting at around Rs.54 on the BSE. When contacted, RPL sources refused to either confirm or deny the development. "We have no comment," they said. In mid-September, Reliance Industries Ltd was allotted the trading symbol 'RIL' on the NYSE. Top-level sources said that RIL was working towards extending an option to its GDR holders to convert their instruments into ADRs. A fortnight ago, RPL had gone in for a conversion of its outstanding $100 million bonds into GDRs. This had instantly resulted in RPL becoming the first Indian company to get its GDRs listed without making an initial public offer. Now, with GDRs being traded RPL's market capitalisation has officially crossed the Rs.20,000 crore (around $4.6 billion) mark. The FCCBs, with a face value of $5,000 each had been converted into 1,000 GDRs at $5 each. This means that every GDR holder has seen his/her holding of $5 rise to $23 in a matter of a few weeks. This translates into a rise of 460 per cent overnight. Investment bankers said that the conversion of bonds to GDRs has not satisfied the company and it was now gunning for the ADR market. Source : MI Oct 20, 1999