A leaf out of Daddy’s book...

One might reckon Mr. Anil Ambani might have been watching Guru off-late. Or even better, original clips of his own Dad. For those who missed out the news, the junior Ambani gave a 1.5 hr speech during the AGM of RNRL lashing out against RIL, the petroleum ministry & the government for setting a high price for RIL's gas supply. Following his father's footsteps, Mr. Ambani used the AGM to vent out all his ill-feelings coming out of the legal tussle with RIL.

For those unaware, RIL has started producing Gas and is ready to distribute them to companies at a set price of $4.40 per mmbtu. The Ambanis has signed a deal when they parted ways that RIL(Mukesh's co.) would supply RNRL(Anil's co.) with gas @ around $2.00 mmbtu. RIL is trying to nullify that agreement. The Govt. is acting as an inter-mediatory, claiming that RNRL's request will bring losses for the govt.

The intention out here Mr. Ambani is most probably to scare off the government & the petromin in particular. The public has short memory of such outbursts and incidents, hence the speech is of not much use to them. The shareholders, those who solely own RNRL shares will support junior Ambani. But then ET has a nice point to make. Many of the shareholders cross-hold RIL shares as well. And Mr. Ambani pointed out that RIL stands to gain exorbitant profits out of the current gas price. Now this should definitely attract more attention to the case. But then, if the SC favours RIL- their share prices will definitely sky-rocket. So shareholders wouldn't be much piqued by this speech. It's not the 80's anymore Mr. Ambani.

The only party bothered is the govt. If Mr. Ambani continues harping off the same point, he might effectively pass on the belief that the govt. favours a champion industries and lets them run-away with the profits. The Congress party already picked up that hint and arranged for a party meeting soon after the speech.

In the movie Guru & in Mr. Ambani's life such speeches have been historic and have brought about some significant changes. Though I'd be surprised if this speech does make much impact, especially on the court case in SC. Times have changed, people's motives have changed. And m sure they'd want to favour the guy with more profits {RIL}. Wat say?