The company made this announcement after trading hours on Tuesday, 9 June 2009.
Meanwhile, the BSE Sensex was up 413.16 points, or 2.73%, 15,540.16.
On BSE, 6.94 lakh shares were traded in the counter. The stock had an average daily volume of 21.36 lakh shares in the past one quarter.
The stock hit a high of Rs 1248 and a low of Rs 1149.30 so far during the day. The stock hit a 52-week high of Rs 1373.70 on 1 June 2009 and a 52-week low of Rs 354 on 27 October 2008.
The large-cap stock had outperformed the market over the past one month till 9 June 2009, gaining 49.42% as compared to the Sensex's return of 27.37%. It had also outperformed the market in the past one quarter, surging 161.35% as compared to the Sensex's return of 85.37%.
The company's current equity is Rs 266.42 crore. Face value per share is Rs 10.
The current price of Rs 1207 discounts the company's Q4 March 2009 annualized EPS of Rs 61.25, by a PE multiple of 19.71.
As per the proposal, the 500-megawatt (MW) Dahanu power station will come under a separate subsidiary Reliance Energy Generation, and Goa and Samalkot power stations under the Reliance Goa and Samalkot Power respectively. The power transmission division will be under Reliance Power Transmission and power distribution division will go to Reliance Energy. While the toll roads division will become Reliance InfraVentures, the real estate division will become Reliance Property Developers.
The de-merger would benefit the respective companies as well as stakeholders as it would create a simplified & transparent business structure and aligning the interest of various stakeholders, the company said. It can attribute appropriate risk and valuation to different businesses based on their respective risk-return profile and cash flows.
Further, the de-merger will give a more focused management and optimal financing structure, greater visibility, tax efficiency and possibility of investments by strategic players in different businesses.
Reliance Infrastructure had on 25 May 2009 said it plans to raise Rs 4300 crore by issuing share warrants to its founders as it gears up to bid for infrastructure contracts. The company will issue 4.29-crore warrants convertible into shares at Rs 1000 each to the Anil Dhirubhai Ambani group.
Reliance Infrastructure's net profit rose 11.2% to Rs 346.18 crore on 42.5% rise in net sales to Rs 2339.67 crore in Q4 March 2009 over Q4 March 2008.
The company is engaged in generating, transmitting and distributing electricity. It also provides electrical contracting, engineering, procurement and construction contracts and computer services.
Reliance Infrastructure had in February 2009 announced that AAA Project Ventures, a promoter of the company pledged more than 3.72 crore shares representing 16.35% of the equity capital of the company.
AAA Project Ventures held 36.66% stake in the company as on 31 March 2009, while the total promoter shareholding stood at 37.55%.