IndianOil - BRPL merger plan awaits Cabinet nod
Kolkata   19-Jun-2007
IndianOil is expecting the Union Cabinet committee to approve the merger proposal of Bongaigaon Refinery and Petrochemicals Ltd (BRPL) with itself next month. "We are expecting the Cabinet note for the same to be circulated in June. Hopefully, the approval will be available in July," a senior company official told Business Line. The board of directors of both the company approved merger of BRPL with IndianOil in November 2006. The swap ratio was pegged at 4:37 (four equity shares of Rs 10 each of IndianOil for every 37 shares of Rs 10 each of BRPL), IndianOil holds 74 per cent stake in BRPL. This was the second merger proposal forwarded by IndianOil after IBP; the later was merged with the parent on May 2. Located at Bongaigaon in Assam, BRPL now refines roughly 2.35 million tonnes of crude. The company has registered a net profit of Rs 239 crore on a gross turnover of Rs 6,426 crore in 2006-07. Shares of BRPL ended at Rs 47,30, lower by 0.11 per cent on the BSE on Monday.