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RIL-RPL Merger Details | Chanakya Speaks
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RIL-RPL Merger Details

2 March 2009 2,458 views 9 Comments

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The news has come in. The board has approved RIL-RPL merger. Contrary to the beliefs of possible swap ratio of 20:1, the swap ratio has been pegged at 16:1 which means for every 16 shares of RPL (Reliance Petroleum Ltd.) held by investors, they would get 1 share of RIL of face value 10 each. For full details of the merger, click here.

The merger will be effective from April 1 and is expected not to give any tax relief to RIL. Reliance Industries Ltd. will issue 6.92 crores to RPL shareholders in this merger. Also treasury stock will be extinguished.

Initial reaction from the market has been 2% decline in RIL shares. The day is expected to see a lot of interest and volume in RIL script when analysts and traders would be eying any remote possibility of a potential arbitrage. Let’s see how the markets react to the news during the day.

9 Comments »

  • Akash said: Again the buzz word in this deal is "synergies". We have all heard Buffett's views on that. Why are no tax benefits expected out of this deal?
    # 3 March 2009 at 8:32 am
  • Chanakya said: @Akash: Let me read a bit more on the deal and then I will get back to you...
    # 3 March 2009 at 7:47 pm
  • shashank said: I used to hold 140 RPL shares. Post amalgamation i received 8 RIL shares due to 16:1 ratio. What happened to the remaining 12 RPL shares?
    # 7 October 2009 at 8:48 am
  • senthil said: I had 27 rpl shares.post amalgamation i received 1 RIL shares.i also want to know what happened to remaining 11 RPL shares?
    # 9 October 2009 at 5:48 am
  • prabhjotsingh said: i have coverted my shares from rpl to ril what about my remaining shares?????? where is my money??????
    # 9 October 2009 at 10:50 am
  • JOMI said: I had 28 rpl shares.post amalgamation i received 1 RIL shares.i also want to know what happened to remaining 12 RPL shares?
    # 9 October 2009 at 11:12 am
  • Mitesh said: http://wealth.moneycontrol.com/features/stocks/rilrpl-what-happens-to-your-fraction-share-/12462/0
    # 10 October 2009 at 12:19 pm
  • Raghavendra said: I bought RPL shares sometime in Aug'09. Am I eligible for Bonus shares too? Also, what happens to balance shares which cannot be factored in multiples of 16?
    # 18 October 2009 at 12:44 pm
  • sandeep said: whether converted rpl to ril shares get bonus or not?
    # 13 November 2009 at 12:14 pm

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