>RIL (BONANZA)

• Post merger Reliance Industries will issue 1 share for every 16 shares of RPL.
• Reliance Industries will issue 6.92 crore new shares thereby increasing the equity capital to 1643 crore. Consequently the promoter holding in RIL will reduce from 49% to 47%.
• The merger will be effective from 1st April 2008.
• The combined capacity post merger will be 1.24 million barrels per day
• The Reliance will emerge as the world’s 5th largest producer of the Polypropelene with the addition of 0.9 million tonnes of RPL.

Recent developments
• The recent developments may cause a pressure on RIL in the short run. The deepening economic crisis in Europe would keep the refining margins capped, delay in production of gas from earlier schedule and merger of RPL would add to the expenses in the initial period.

• Delay in production of gas from KG Basin‐ The Company is ready to start gas production from its eastern offshore KG‐D6 fields by April 2009. Previously the company had planned to start it from February 2009. The production of gas in the basin will be scaled up to 40 mmscmd by end 2009 and to 80 mmscmd by end‐2010. The selling price approved by the government is $4.2 though this price is currently is the matter of litigation.

• Rupee Devaluation‐ Due to rupee devaluation the loan liability has increased as the project cost estimated at Rs.27000 Cr had increased.

To see full report: RIL