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Our Bureau

To result in forward integration; net drops to Rs 249 cr

Mumbai , April 25

Indian Petrochemicals Corporation Ltd (IPCL) will merge six polyester manufacturing companies with itself, a move that is set to result in forward integration of the Vadodara-based company in the petrochemicals chain.

The board of directors of IPCL on Tuesday 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.

The board has recommended an exchange ratio of one share of IPCL for every 25 shares of AFL, 23 shares of CIPL, 28 shares of IPL, 28 shares of OPL, 34 shares of RSL and 38 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 to 28.73 equity crore shares (24.82 crore shares) post-merger.

The six companies are engaged in the manufacture of polyester staple fibre (PSF) and polyester filament yarn (PFY), while IPCL is engaged in the manufacture of MEG, a critical raw material for manufacture of PSF and PFY.

IPCL today returned a net profit of Rs 249 crore for the quarter ended March 31, down Rs 87 crore from Rs 336 crore. The company saw a slump in its net turnover at Rs 2,298 crore (Rs 2,643 crore).

For the full year, IPCL returned a net profit of Rs 1,005 crore (Rs 786 crore) on a net turnover of Rs 8,469 crore (Rs 8,199 crore).

More Stories on : Petrochemicals | Mergers & Acquisitions | Indian Petrochemicals Corporation Ltd | Textiles

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