Reliance declines offer to pick up additional 5% equity in IPCL

Reliance Industries is understood to have declined an offer by government to pick up an additional 5 per cent equity in IPCL for raising its stake to 51 per cent as part of sale of the latter’s residual equity in the erstwhile PSU. The group holds the belief that wider equity distribution would help in maintaining greater liquidity. Besides, greater public participation would also be in tune with government’s policy of disinvesting to public. A three-day deadline set by government for the group to respond, expires on Saturday. Reliance had bought 26 per cent government equity in IPCL in 2002 and subsequently acquired 20 per cent additional stake through an open offer. Government had offered Reliance 5 per cent equity at Rs 195 or the offer price at the closure of the bids, whichever is higher. (PTI)