Stock punters in Bombay are burning their phone lines discussing the possible man behind this entire "BSE-RIL drama". Even though Reliance has named M.G. Damani and Rajendra Banthia for "conducting a sustained vilification campaign" against it, the market is agog with rumours about who really is responsible for such a sustained bear run on Reliance scrips.
Two names are being mentioned, both guardedly and anonymously: the Ruias of Essar and the Ambanis' old bete noir , Nusli Wadia. The Ruias mainly because many thought the recent obdurate stand of the BSE against the listing of Essar Oil's issue was instigated by the Ambanis, since the Reliance group already had a readymade refining project. But surprisingly, Reliance sources say it is unlikely the Ruias would go to such lengths.
No one's willing to go on record, but there are strong rumours that the entire episode is orchestrated by Nusli Wadia of the Bombay Dyeing group. According to brokers, Banthia is an old Wadia supporter and one of the loyal brokers of the group. "He is also an extremely sharp operator, otherwise he would not be compared by the media as one of the Davids taking on the Goliath of Reliance," says a BSE broker.
According to sources, Banthia himself may not be directly involved, but his followers may be responsible for going short on Reliance. "Not just the followers, as events are proving, his backing too is top class and goes right up to North Block," says another punter. On November 30, the Reliance counter at the NSE witnessed heavyshot covering from the bear operators throughout the day and specifically during the last hour. Reliance prices opened at Rs 201 and thereafter continuously showed a progressive trend. Whenever the price reacted after going up, the buying pressure in the form of large orders of 25,000 to 50,000 shares was evident and the price would recover immediately.
Sources in the BSE also allude to the fact that Wadia had announced at the AGM this year that Bombay Dyeing is planning to put up a 2.5 lakh tonnes per annum PTA plant which would be in direct competition with RIL's 2.75 lakh tpa PTA capacity. Says a well-entrenched broker in the BSE: "I am 110 per cent sure that there is someone behind this entire campaign. Look at the way stories have been slowly trickling down. No sooner had the BSE imbroglio been over than the Finance Ministry's investigation on zero tax about Reliance started. It almost seems that the media, in cahoots with the real grizzly bear, is bending over backwards to maintain the selling pressure on Reliance."
It may be recalled that in July 1993 the late biscuit baron, Rajan Pillai, led 70 Congress MPs to dash off a letter to the Centre, accusing Wadia of spying and traf-ficking in drugs. At the time, Wadia had said, "The fact that Bombay Dyeing is expanding and we are interested in Britannia should tell you something." Should that be taken as a hint today as well?