Reliance Industries Limited and Reliance Petroleum Limited were finally merged on March 2, 2009. Reliance Industries Limited is India’s largest company by market capitalisation. It had offered one share of every 16 shares held in Reliance Petroleum to merge its refinery subsidiary.
According to the terms and conditions of the amalgamation, RIL has to issue 69.2 million new shares to shareholders of RPL in order to buy back the company and will have 3.7 million shareholders after the merger. After the merger RIL’s equity capital rose to Rs. 1643 crore and the promoter’s holdings fell by 2% to 47%.
The main motive behind the merger is that this would help source crude oil for the integrated refinery complex and aid marketing of fuels such as gasoline and diesel globally at a time when demand was slumping.
RIL-RPL merger: Salient features
This merger creates onefourth of the world’s total complex refining capacity.
This way company becomes the world’s single-largest refining hub.
After merger company becomes the world’s 13th largest refining company.
It becomes world’s fifth largest polypropylene producer.
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