Bombay HC clears RIL-RPL merger

The Bombay High Court has approved the merger of Reliance Industries and Reliance Petroleum, but with a four-week stay. 

Approving the merger, Justice A M Khanwilkar also stayed the court's earlier order, to enable investor activists Anup Sheth and others to file an appeal against the merger before a division bench of the HC.

The objectors wanted the court to order inquiry by stock market regulator SEBI, the Reserve Bank of India and other financial governing bodies into the merger before approving it.

Investors Anup Sheth and others have faulted the valuation of shares used for arriving at exchange ratio for merger, saying it was not "fair and correct" as several financial aspects were not taken into consideration. The valuation also overlooked several facts and circumstances and assets and liabilities, they pointed out.

Some investors of RIL and RPL had raised objections to the merger of the two group companies over their valuations and had demanded revaluation of the entire RIL-RPL merger share swap ratio.

They also sought separate balance sheets of both RIL and RPL instead of a combined balance sheet as was being provided to them.