IPCL may merge with RIL
Analysts expect the merger ratio to be between 5:1 to 6:1, in favour of RIL shareholders.
By TNN |
MUMBAI: IN A move that is being viewed as a precursor to restructuring within the group, the Reliance Industries (RIL) board will meet on March 10 to discuss merger with the Baroda-based Indian Petrochemicals Ltd (IPCL).
The move will increase integration between the two companies. Analysts expect the merger ratio to be between 5:1 to 6:1, in favour of RIL shareholders.
The two companies have integrated their operations to some extent since RIL’s acquisition of the PSU petrochemical company in 2002. IPCL, which employs about 13,000 people, produces polymers, synthetic fibre, fibre intermediates, surfactants, commodity chemicals and catalysts.
The company owns and operates three petrochemical complexes at Vadodara, Nagothane and Dahej. It also has two joint ventures-Gujarat Chemicals and Port terminal Co at Dahej and Indian Vaccines Corp at Gurgaon.
The move will increase integration between the two companies. Analysts expect the merger ratio to be between 5:1 to 6:1, in favour of RIL shareholders.
The two companies have integrated their operations to some extent since RIL’s acquisition of the PSU petrochemical company in 2002. IPCL, which employs about 13,000 people, produces polymers, synthetic fibre, fibre intermediates, surfactants, commodity chemicals and catalysts.
The company owns and operates three petrochemical complexes at Vadodara, Nagothane and Dahej. It also has two joint ventures-Gujarat Chemicals and Port terminal Co at Dahej and Indian Vaccines Corp at Gurgaon.
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