ADAG stocks slip on fresh concern about 2G scam fallout

Shares of ADAG companies have taken a severe beating amid media reports that the CBI has offered the three executives of the Anil Ambani group companies to turn approvers in the ongoing 2G trial. Reports also said that the CBI continues to probe Anil Ambani's alleged role in the controversial Swan Telecom deal.

Reliance Capital was down nearly 12% at Rs. 315, while Reliance Infrastructure was down 7% at Rs. 373. RCOM was down 7.6% at Rs. 71 while Reliance Power was down ~4% at Rs. 76.80. Reliance Broadcast Network was down ~13% at Rs. 69while Reliance MediaWorks was down ~6% at Rs. 90.95.

ADAG stocks collapse

Six Anil Dhirubhai Ambani group stocks fell 10% to 23.38% on reports the group's chairman Anil Ambani met Telecom Minister Kapil Sibal in the backdrop of ongoing 2G probe.

At 14:57 IST, Reliance Infrastructure (down 23.38%), Reliance MediaWorks (down 18.53%), Reliance Communications (down 16.31%), Reliance Capital (down 16.14%), Reliance Power (down 11.63%) and Reliance Broadcast Network (down 10%), slumped.

Mukesh Ambani seeks harmonious ties with ADAG

The legal dispute over gas supply with RNRL is over and Reliance Industries is now looking forward to "harmonious" and "constructive" relations with the Anil Dhirubhai Ambani Group (ADAG). This was stated by none other than Mukesh Ambani, the chairman of RIL at the company's 36th AGM in Mumbai on Friday. The Supreme Court (SC) verdict in May this year largely upheld RIL's stand in the gas dispute with RNRL, Mukesh Ambani told shareholders. Natural gas from the KG Basin would be supplied to ADAG power plants according to the Government-fixed formula as and when they are ready, he added.

Seventymm selling out ?

In its bid to expand its footprint in the entertainment business, Anil Ambani-controlled Anil Dhirubhai Ambani Group (ADAG) is negotiating a buyout of India’s largest online movie rental company Seventymm Services Pvt. Ltd, which delivers video compact discs and digital video discs to homes of around 25,000 customers.

Reliance Entertainment Pvt. Ltd, part of ADAG, is already into movie rentals under the brand of Big Flix.

Seventymm chief operating officer Subhankar Sarkar denied buyout talks, but two senior ADAG and Seventymm executives, both of whom did not want to be identified, said negotiations were at an advanced stage. Terms of the potential acquisition were not immediately available. An ADAG spokesman said in an email that the group does not comment on speculation.

An executive at venture fund Matrix Partners India, a local arm of US-based firm Matrix Partners, which is one of the key investors in Seventymm with a $7 million (Rs28.7 crore) investment, too declined comment. Other backers of Seventymm include venture capital firms such as Draper Fisher Jurvetson and ePlanet Ventures.
Bangalore-based Seventymm is the largest online movie rental service in India, offering access to more than 15,000 titles across multiple languages including English, Hindi, Tamil, Telugu, Malayalam, Kannada, Bengali, Gujarati, Marathi, Assamese, Oriya, Bhojpuri, Rajasthani and Punjabi.

“This deal assumes significance as Seventymm claims 25,000 customers in six cities including Chandigarh, Bangalore, Chennai, Hyderabad, Delhi and Mumbai. Reliance ADAG could smoothly launch online movie rental business as other majors are planning to getting into this space,” a senior executive of a rival online movie rental company, who does not want to be named, said.
He added that the market is set to grow significantly with the entry of firms such as Nimbus Communications and Moser Baer. The players in the online movie rental space today include Catchflix, Friday Box Office, Cinesprite and Clix Flix.
Seventymm, promoted by entrepreneur Raghav Kher, recently acquired New Delhi-based Madhouse, which was the first Indian company to offer movie DVD rental service through the Internet, phone and text messaging services, for an undisclosed amount.

ENAM, ADAG Portfolio

ENAM Portfolio

Company Name	% stake
Bannari Amman	3.4
Champagne Indage	1.4
Educomp Solution	5.9
Elder Health	2.8
Elgi Equipment	1.7
Ess Dee Aluminiu	7.2
FDC	1.5
Greenply Inds.	3.8
Guj. Flourochem.	1.3
Helios Matheson	1.0
Hi-Tech Gears	3.1
IP Rings	7.1
Kar Mobiles	4.3
Kernex Microsyst	1.1
Khaitan Elect.	4.4
Lak. Mach. Works	2.4
Motherson Sumi	1.4
MRF	5.1
Munjal Showa	7.1
Pantaloon Retail	1.0
Plethico Pharmac	1.3
Polyplex Corpn	3.6
Prima Agro	2.0
Prithvi Info	1.2
Rane Engine Val.	3.9
Rane Holdings	1.1
Rico Auto Inds	2.3
Shree Ram Mills	3.7
SPL Polymers	1.2
Sterling Tools	1.8
Super Spinning	1.4
Taneja Aerospace	2.6
XL Telecom	3.5

ADAG

Company Name	% stake
Bhartiya Intl.	2.8
HBL Power System	3.0
Zodiac Cloth. Co	6.4
Anant Raj Inds.	4.8
Champagne Indage	6.8
Hitachi Home	2.2
ICSA (India)	6.8
KLG Systel	3.7
Magma Shrachi	12.7
Mercator Lines	1.8
NDTV	1.6
Network 18	2.5
OCL India	1.4
Oswal Chem & Fer	5.0
PVR	1.3
Ramco Systems	2.2
Reliance Communi	0.7
Reliance Natural	0.0
Saregama India	6.0
Shri Lakshmi	2.0
TV 18 India	2.6
Venus Remedies	2.5
Viceroy Hotels	3.1
Hind.Dorr-Oliver	1.1