No merger of Reliance with IPCL on the cards

10-Mar-05

Reliance Industries, has denied reports to merge group company Indian Petrochemicals Ltd. (IPCL) with the parent firm. It was earlier reported that IPCL is likely to be amalgamated with Reliance Industries with a merger ratio of 4:1. Yesterdays' report indicated that the expiry of the 3 year old IPCL shareholders agreement with the Indian government on June 4 could see Reliance Industries going ahead with the merger without prior government approval. Reliance acquired the government's 26% stake in IPCL, India's second largest petrochemicals company, in 2002 as part of the privatisation drive, and later picked up another 20% stake as per the acquisition norms.