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Sunday, June 15, 2008

'Bonus lie' charge irks Mukesh Ambani

 
13 Jun, 2008, 0037 hrs IST, ET Bureau
 

MUMBAI: "If you don't like the Reliance stock, sell them away," an irate Mr Ambani told a shareholder at Thursday's AGM pestering him about bonus shares.

The shareholder argued that Mr Ambani is spending Rs 8,000 crore in building the world's costliest house, another Rs 600 crore to gift an aircraft to his wife and when it comes to rewarding the shareholders through bonus issue, he turns a miser.

Mr Ambani tried to pacify him and invited him to have a cup of tea, but the shareholder carried on and warned Mr Ambani that he may come down to the earth one day. The shareholder also alleged that Mr Ambani did not stick to his words and has not awarded a bonus despite having promised one in the past few AGMs.

This further angered Ambani and he banged on the dais and said, "Don't speak a lie at a corporate AGM. This is not a political meeting. The proceedings of every year AGM are recorded and I never promised any bonus issue. It is a decision to be taken by the RIL board. Corporates mein aisa hi chalta hai... (This is the way how corporates function)."

Earlier while addressing the shareholders, Mr Ambani said, "All our businesses have delivered outstanding results and all shareholders have benefited significantly. Over the past five years, the market capitalisation has grown by 54% compounded per annum. This is a glowing assertion of our commitment to shareholder value creation. We have increased our dividend payout to 130%, amounting to Rs 1,631 crore ($407 million) for the year."

RIL's market cap has increased Rs 1,30,274 crore ($32,471 million) to Rs 329,179 crore ($82,049) during the 2008 fiscal.

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