As expected IPCL would merge with RIL

The Boards of Directors of Reliance Industries Ltd. (RIL) and Indian Petrochemicals Corp. Ltd. (IPCL) will meet on March 10 (Saturday), to consider a proposal to merge the two companies.
The Boards of the two companies will also discuss and declare an interim dividend for the year ending on March 31.

The announcement was made after the close of the market. RIL shares closed the volatile day at Rs1289.35, down Rs10 or 0.8% from the previous close. It had been as high as Rs1331 and as low as Rs1262 earlier.

IPCL finished at Rs231.65, down Rs2.20 or 0.8% over yesterday close. It touched a peak of Rs242.35 and a low of Rs227.15.

In May 2002, RIL won the bid to acquire a 26% stake in IPCL at Rs231 a share for Rs14.91bn. RIL's bid was way ahead of the other two bids. While public sector oil major Indian Oil Corp. Ltd. (IOC) bid Rs128 a share, Nirma offered Rs110 a share.

RIL went on to buy an additional 20% stake in IPCL through the mandatory open offer. At present, the promoters' stake in IPCL stands at 46.68%. Foreign Institutional Investors (FIIs) own 12.5%, Insurance Companies 8.8%, MFs/UTI 3.4% and FIs/Banks hold 2.4%.

The Government has a miniscule 0.35% stake in IPCL.