Mumbai, India: Reliance Power Limited (RPL), proposes to come up with a Public Issue of 130 Crore Equity shares of Rs.2 each. Draft Red Herring Prospectus (DRHP) has been filed with Securities and Exchange Board of India (SEBI) for the RPL IPO, expected to be the biggest issue in the Indian stock exchange.
Mr. Veekay Arora, Spokesperson, REL Investors Forum has written on October 26, 2007 an open letter to the independent directors of Reliance Energy Ltd.
Kind Attention: Gen.V.P.Malik , Leena Srivastva & V.R.Galkar
Reliance Energy Limited
Reliance Energy centre
Santa cruz (East)
Mumbai -400055
FAX 022-30099763
October 26, 2007
Open Letter To Independent Directors Of Reliance Energy From Investors
Dear Sir/Madam
1. As independent directors on the board of Reliance Energy, did you support the move to transfer all power projects of REL to Reliance Power?
2. Did you not feel it unfair on small investors (public) and FIs to transfer existing and all future revenue earnings of Reliance Energy to Reliance Power?
3. Do you know that Reliance Energy did not inform the stock exchanges about transfer of projects to Reliance Power -- a development affecting its future earnings?
4. What have you done to protect the interests of small investors (public) and FIs in Reliance Energy?
5. By your silence are you not supporting the moves of promoters to transfer assets of Reliance Energy to Reliance Power without a care for the views and interests of the shareholders?
6. Did you know about the merger of Reliance Power with Reliance Public Utility Private Ltd and that approval for the merger was obtained from Mumbai high court without disclosing the Reliance Power IPO plans?
7. Don't you think that the role of independent directors is to ensure that corporate governance norms are never violated and public trust is always upheld. Can this objective be achieved by keeping quiet when rules are flouted as in the case of Reliance Energy-Reliance Power?
Investors of Reliance Energy and all small investors across the nation would like to know if their interests are being protected by independent directors or is their role really just to serve corporate interests?
Highest regards
Veekay Arora, Spokesperson, REL Investors Forum
