Erstwhile PSU IPCL to merge with Reliance Ind

Ahmedabad, Mar 7 (UNI) Reliance Industries Ltd (RIL), controlled by Mukesh Ambani, is all set merge the erstwhile Public Sector company Indian Petrochemicals Corporation Ltd(IPCL), which the Reliance had bought as the strategic partener in 2002 by acquiring 26 per cent equity from the Union government.

The company has sent a notice to the Bombay and National stock exchanges, stating that the board of directors will meet on March 10 to consider the merger of IPCL with the RIL. The merger will be subject to approval of various authorities.

The merger will be first of its kind, when the erstwhile public sector company will lose its entity after the completion of all formalities.

RIL scrip today ended at Rs 1289.35, a fall of Rs 10.35 from the previous closing.

The Union government divested the IPCL in favour of Reliance on May 21, 2002, and signed three agreements including extension of Transfer Restriction Agreement.

The government has directed the Reliance Industries management that time not to directly or indirectly sell or transfer any of such purchased shares to any person for a period of three years, but the market have been hoping a merger since last year, when the company has completed three years lock-in period.

The government has sold 64,538,662 shares constituting 26 per cent equity of the IPCL at a rate of Rs 231 per share to M/s Reliance Petroinvestments Ltd at a total cost of Rs 1490 crore.

Later, the company increased its stakes to over 50 per cent to make it as a subsidiary of Reliance Group.

UNI