The Hindu Business Line : Gujarat HC approves RIL-RPL merger

The Mumbai High Court had already approved the merger on June 7, 2002. Earlier this year, shareholders of RIL and RPL, had approved the merger ratio of one RIL share for every 11 RPL shares, proposed by the company.

Post-merger, stock exchanges and the public will be informed of book closure dates for issue of new RIL shares to RPL shareholders, dividend payments for financial year 2001-02 and schedule for completion of other formalities, a news release said.

The equity share capital of the merged entity is expected to be Rs 1,396 crore with total assets at Rs 55,000 crore. Also, post-merger, RIL's sales are expected to be Rs 58,000 crore while profits are to go up to Rs 4,000 crore with a market capitalisation of Rs 45,000 crore.

In April, the late Mr Dhirubhai Ambani, Founder Chairman of Reliance Industries, had told shareholders at the EGM held in Mumbai: "The merger will enhance RIL's flexibility particularly in the context of its own E&P and infocom sector initiatives and the Government's approach towards hydrocarbon sector reforms, deregulation of marketing of petroleum products and the privatisation of public sector enterprises.''

He had said the company would focus on the size and scale of its operations relative to the global energy companies.

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Gujarat HC approves RIL-RPL merger