BSES, which is struggling with its financials and trying hard to dress up itself from red to black, is, now in the hands of the corporate giant known for its wealth creation. With change of hands BSES will definitely rise to new heights.

BSES one of the leading power companies of the country is in news due to the acquisition of controlling stake by Reliance. BSES is the largest power distribution company in India, distributing approximately 4,000 MW of power, and holds the exclusive license for distribution of power to substantial areas in Mumbai, Delhi and Orissa. The company provides services in electrical contracting, engineering, procurement and construction contracts, computer services, and also operates as an Internet Service Provider (ISP) in Mumbai.

Reliance which was already the single largest private sector shareholder in BSES, with aggregate shareholding of 44.12% of the subscribed and fully paid-up equity share capital of the company made second open offer along with Reliance's wholly-owned subsidiary, Reliance Power Ventures Ltd. on December 20, 2002 to acquire additional 20% equity in BSES Ltd. at Rs. 230.10 per share which was opened on January 17, 2003 and closed on February 15, 2003. The second open offer was made in pursuance of Reliance's publicly stated objective of acquiring majority shareholding and management control of BSES, in a fair and transparent manner, in accordance with the Regulations. When the second offer closed, Reliance's stake in BSES had increased to 58%. Earlier, the FIIs were reluctant to sell their stake in BSES as they considered Reliance's offer price to be too low and felt that the share price would rise once Reliance takes over the management control but later on had reduced its stake to 1.5% as compared to 2.5% three months ago.

Earlier, Reliance had made an open offer for BSES in May 2000, as a result of which its shareholding in the company had increased from 14.82% to 26.68%. Thereafter, Reliance had increased its shareholding in BSES, through market purchases, made in accordance with the provisions of the Regulations.

Corporate, BSES, financials, electrical contracting, engineering, procurement, construction contracts, computer services, Internet Service Provider (ISP), private sector, shareholder, Reliance's wholly-owned subsidiary, Reliance Power Ventures, management control, Regulations, market purchases, shareholding, wealth creation.