RIL nods IPCL merger with itself

Mumbai, Mar 10 (UNI) The boards of directors of Mukesh Ambani-led Reliance Industries (RIL) and of Indian Petrochemicals Corporation (IPCL) today unanimously approved merger of the two companies.

The RIL board approved a swap ratio of 1:5; that is one share of Reliance for five shares of IPCL, a company media release said.

Reliance had acquired 26 per cent equity in IPCL in 2002 and subsequently increased its holding to 46 per cent through an open offer.

Over the past five years, IPCL's revenue increased from Rs 5,527 crore in 2001-02 to Rs 12,362 crore in 2005-06, a compounded annual growth rate (CAGR) of 22 per cent and net profit went up from Rs 107 crore in 2001-02 to Rs 1,164 crore in 2005-06, a CAGR of 82 per cent, the release added.

UNI