New Delhi, Mar 2: Reliance Industries Limited (RIL) has approved the absorption of its refinery subsidiary Reliance Petroleum Limited (RPL) on Monday, Mar 2. RIL, India's largest listed firm, said it would issue one share for every 16 held in its unit, which runs a refinery.
The merger ratio is slightly in favour of RPL and will be effective from Apr 1, 2009.
The move has put the merged entities on the list of the world's top 50 profitable companies. RIL would also buy Chevron's 5 per cent stake in Reliance Petroleum, it said on Friday, Feb 27.
The scrip of Reliance Petroleum on Friday, Feb 27 closed at Rs Rs 76.20, down 1.23 per cent, while Reliance Industries was quoted at Rs 1,265.05, down 1.97 per cent on the BSE.
RPL had raised Rs 8,100 crore through an IPO and had sold 5 per cent equity to US energy firm Chevron for $300 million.