The board of directors of Gujarat Narmada Valley Fertilisers (GNFC) and Narmada Chematur Petrochemicals (NCPL) has approved a merger proposal for NCPL into GNFC. GNFC holds 56.45% stake in NCPL. The exchange ratio approved by both the boards will be one GNFC share for every 3 shares of NCPL. This decision is in pursuance of actions initiated after deliberations by both the boards on October 27, 2005, to explore the possibility of a merger. The appointed date of merger will be April 1, 2005, and the merger will be effective on completion of requisite formalities.
This merger is consistent with the corporate trend of consolidation. Both the companies are optimistic that the merged entity will enjoy huge benefits of enhanced strength of GNFC and help both the companies in executing their plans put on hold because of lack of required strength.
02-Mar-06 
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