RIL-RPL Merger : Consolidating Synergies

The Reliance Industries Limited board is meeting today to discuss merging Reliance Petroleum with itself. The move may convert RIL into one of the biggest refineries in the world. The Swap ratio has been fixed at 16:1. This means that 16 Shares of RPL would convert into 1 Share of Reliance. The merger is going to be effective from 1st April,2008. The merger would result in addition of Rs 1,300 crore to RIL's net profit. Post-merger, the equity shareholding of the promoters in RIL would come down from the current 44% to 34%.