The Madras High Court on 17 August 2010 asked market regulator Sebi, RNRL and Reliance Power to reply to allegations that the merger between RNRL & Reliance Power caused investors a loss of over Rs 800 crore. The responsible authorities were asked to reply to a petition that alleged that the loss was caused by an "arbitrarily" fixed share swap ratio for the merger. On 4 July Anil Ambani Group had announced the merger between RNRL & Reliance power in an all-stock deal. According to the arrangement Reliance Power would give one of its shares for every four held in RNRL. The 4:1 swap ratio led to a loss of Rs 813.77 crore for about 25.05 lakh investors.
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