The Hindu Business Line : Shareholders, creditors clear IPCL-RIL merger

Ahmedabad April 19 Indian Petrochemicals Corporation Ltd (IPCL), which came into being as the largest public sector petrochemicals company in India in the 1960s, has now been formally merged with Reliance Industries Ltd (RIL), which had taken it over in 2002 following the Centre's disinvestment policy.

RIL had announced the merger of IPCL with itself last month, with a share-swap ratio of one-to-five. With the company deciding on downsizing the staff, it had also seen a three-day relay hunger strike which, however, fizzled out when nearly 2,400 employees out of 5,500 opted for a golden-handshake policy.

The decision about the merger was taken in court-convened meetings of shareholders and secured and unsecured creditors of the Vadodara-based IPCL on April 14, who approved the Scheme of Amalgamation of IPCL with RIL.

Vote pattern

Cent per cent of the secured and unsecured creditors and 97.04 per cent of the total number of shareholders present in person or through their proxies voted in favour of amalgamation, the company said in a release here on Thursday.

The 97.04 per cent of the shareholders present in person/proxies represented 99.89 per cent of the total value of the equity shares held by them. Only 233 shareholders, constituting 2.96 per cent of the shareholders present in person/proxies, representing 0.11 per cent of the total value of the shares, voted against the Scheme.

Sanction petition

The company has now filed a petition seeking approval of the Gujarat High Court for sanction of the Scheme.

In the last fiscal, IPCL produced close to two million tonnes of merchant products. Its unaudited net turnover for the year 2005-06 was Rs 9,597 crore and net profit was Rs 1,005 crore.

With its three plants located at Vadodara, Nagothane and Dahel, IPCL's main business comprises of polymers, synthetic fibres, fibre intermediates, surfactants, commodity chemicals and catalysts.

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