IPCL to merge six Reliance group firms

Indian Petrochemicals Corporation (IPCL), part of the Reliance group, today decided to merge of six group companies with itself.

These are Apollo Fibres (AFL), Central India Polyester (CIPL), India Polyfibres (IPL), Orissa Polyfibres (OPL), Recron Synthetics (RSL) and Silvassa Industries (SIPL). The appointed date of merger is April 1, 2005.

The IPCL board, which approved the merger, also recommended swap ratios for this amalgamation.

According to the swap formula, shareholders of all these companies will get one equity share of IPCL for every 25 shares of AFL, 23 equity shares of CIPL, 28 equity shares of IPL, 28 equity shares of OPL, 34 equity shares of RSL and 38 equity 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 equity capital base will increase from 24.82 crore shares to 28.73 crore shares, post merger. IPCL manufactures polymers, mono ethylene glycol and chemicals at its manufacturing plants at Baroda and Gandhar in Gujarat and Nagothane in Maharshtra.

IPCL has assets of Rs 8,948 crore as on March 31, 2006. AFL, OPL and SIPL are not listed with the bourses.

All the merging companies are engaged in manufacture of polyester staple fibre and polyester filament yarn.

For the year ending March 31, 2006, AFL has a turnover of Rs 766 crore, EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 47 crore and net profit of Rs 15 crore. AFL has assets of Rs 378 crore.

CIPL has a turnover of Rs 356 crore in FY 2005-06, EBITDA of Rs 32 crore and net profit of Rs 14 crore. CIPL has assets of Rs 230 crore. In FY 2005-06, IPL has a turnover of Rs 271 crore, EBITDA of Rs 7 crore and net profit of Rs 3 crore. IPL has assets of Rs 140 crore.

OPL has a turnover of Rs 41 crore in last financial year and EBITDA of Rs 10 crore and net profit of Rs 1 crore. OPL has assets of Rs 167 crore.

For the year ending March 31, 2006, RSL has a turnover of Rs 833 crore, EBITDA of Rs 19 crore but registered a net loss of Rs 16 crore. RSL has assets of Rs 377 crore. In FY 2005-06, SIPL has a turnover of Rs 695 crore, EBITDA of Rs 39 crore and net profit of Rs 15 crore. SIPL has assets of Rs 370 crore as on 31 March 2006.