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October 23, 2007 15:55 IST
An association of investors in Anil Ambani-led Reliance Energy [Get Quote] on Tuesday alleged that the planned IPO of group company Reliance Power will erode the value for REL shareholders, but ADAG termed it as a "vicious campaign" by vested industrial interests.
"A close study of draft prospectus reveals that the power generation business opportunities secured in the name of REL and secured with the strength of REL have been transformed to RPL by means of some internal MoUs and understandings," REL Investors Forum said in a faxed press release.
"The shareholders of REL have been deprived of the entire power generation business prospects to be accrued to them. By means of such a transfer of business and creation of another shell company to issue public shares, now the power generation profits will accrue to the new company in which Anil Ambani holds 50 per cent."
Investors in REL are feeling cheated with ADA group company RPL's proposed public issue, it noted.
When contacted, REL Investors Forum Secretary 'Veekay', whose name was mentioned on the release along with two other persons -- Prakash Krishnan and Anil Upadhyaya -- told PTI that the forum members include 60-70 shareholders of REL.
"We are looking at taking legal recourse to safeguard the interest of REL shareholders," Veekay said, adding the forum was also writing to other shareholders to join the campaign.
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