Indian Petrochemicals Corporation Limited (IPCL) Board of Directors (BOD) has approved the merger of Apollo Fibres Ltd (AFL), Central India Polyester Ltd (CIPL), India Polyfibres Ltd (IPL), Orissa Polyfibres Ltd (OPL), Recron Synthetics Ltd (RSL) and Silvassa Industries Pvt Ltd (SIPL) with IPCL, subject to necessary approvals.
These all companies are Reliance group of companies.Indian Petrochemicals Corporation Limited (IPCL) Board of Directors (BOD) has approved the merger of Apollo Fibres Ltd (AFL), Central India Polyester #
Benefits of the merger:
AFL, CIPL, IPL, OPL, RSL and SIPL are engaged in manufacture of Polyester Staple Fibre ('PSF') and Polyester Filament Yarn ('PFY'). IPCL is engaged in the manufacture, inter-alia, of MEG, which is the critical raw material for manufacture of PSF and PFY.
Considering the global dynamics of demands and supply of MEG, it is considered advantageous to convert MEG locally into value added products, like PSF and PFY directly rather than export or supply of MEG as an intermediate product. The twin advantage of assured feedstock utilization and combined manufacturing facilities of AFL, CIPL, IPL, OPL, RSL and SIPL would enhance efficiencies throughout the value chain.
Details of the merger:
The Board has recommended an exchange ratio of 1 equity share of IPCL for every 25 equity shares of AFL, 23 equity shares of CIPL, 28 equity shares of IPL, 28 equity shares of OPL, 34 equity shares of RSL and 38 equity shares of SIPL. This would result in issuance of 3.91 crore equity shares of IPCL, to the shareholders of the merging companies. IPCL's share capital will increase from 24.82 crore equity shares to 28.73 equity crore shares post merger.