IOC-BRPL merger expected to be cleared soon

08 December 2008

Indian Oil Corporation (IOC), the country's biggest refiner-retailer, is expected to merge Bongaigaon Refinery & Petrochemicals Ltd (BRPL) with itself, reports quoting senior officials of both the companies said.

The department of company affairs has concluded all the proceedings in this regard and is expected to approve the proposal in December-January, sources said.

The merger is likely to keep the swap ratio unchanged at four equity shares of Rs10 each of IOC for every 37 shares of Rs10 each of BRPL. The boards of both the companies have already approved the proposal, in November 2006.

IOC, which already holds 74 per cent stake in BRPL, is awaiting government nod for effecting the merger.

The merger is expected to generate a net saving of around Rs80 crore by way of avoiding double taxation on product transfer.

BRPL posted a net profit of Rs294 crore on a turnover of Rs6,114 crore during the last fiscal (2007-08).