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RIL Receives SEBI Nod To Make O2C Business An Independent Subsidiary

By Staff
|

Reliance Industries Limited (RIL) said on Tuesday that it had received approval from the Securities and Exchange Board of India (SEBI) and stock exchanges for its proposal to hive off its oil to chemicals (O2C) business into an independent subsidiary.

 

RIL Receives SEBI Nod To Make O2C Business An Independent Subsidiary

The company now requires the approval of equity shareholders and creditors, regulatory authorities, and the income-tax authority, besides the National Company Law Tribunals (NCLT) in Mumbai and Ahmedabad. RIL said that it expects the approval process to be completed by the second quarter of the financial year 2021-22.

In its presentation to investors on Tuesday, RIL said that the creation of this subsidiary would facilitate value creation through strategic partnerships and attract dedicated pools of investor capital. When finalised, the deal is expected to be one of the largest downstream transactions in India.

RIL said it would transfer all its refining, marketing and petrochemical assets to O2C. This includes RIL's 51% stake in its joint venture with BP, the existing fuel retailing subsidiary. The management control of the O2C continues with RIL and the existing O2C operating team moves with the transfer of business. There would be no dilution of earnings or any restriction on cash flows, the company said.

Shares of the company closed 0.90% higher at Rs 2,026.15 on Tuesday.

Read more about: ril reliance industries limited
Story first published: Tuesday, February 23, 2021, 16:21 [IST]
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