KRL up on merger plan

DALAL STREET SPIKES

Both Bharat Petroleum Corporation Ltd (BPCL) and Kochi Refineries were in the limelight on news that the board of directors of Kochi Refineries is meeting on October 26 to consider a proposal for an in-principle approval of the merger of the company with BPCL.

The Kochi Refineries stock spurted 6.77 per cent to close at Rs 206.70, backed by an impressive volume of more than 5.36 lakh shares on the Bombay Stock Exchange (BSE) on Tuesday. BPCL, too, gained 2.60 per cent to close at Rs 358.60.

Kochi Refineries is already a subsidiary of BPCL with BPCL holding a 54.81 per cent stake in it. Market analysts said the merger of Kochi Refineries with BPCL would augur well for the latter amid strong demand and firm refining margins.

Kochi Refineries is a standalone refinery company with a capacity of 7.5 million metric tonne per annum. The share price of Kochi Refinery has risen sharply in the last few months. From a low of Rs 151.65 on August 19, 2004, the scrip has jumped up 36.4 per cent to Tuesday's close of Rs 206.70.