Related It’s advantage RPL in 1: Not all shareholders waited for the announcement. The present study is an attempt to find out the difference in post merger financial performance compared with pre merger in terms of profitability and generating more value than the separate firms, resulting in consolidation, refocusing and restructuring of the industry with a motive of faster mechanism. Secondly, the study is based purely on secondary data which are taken from the financial statements of the case through Internet only and therefore can’t be denied for any ambiguity in data used for the analysis. The test for difference of mean was applied to check whether the difference in the pre merger and post merger was significant or not.

The issue had a size of Rs 2, crore and like the one in , the offer price was Rs 60 per unit. Usually, one company will buy another and, as part of the deal’s terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it is technically an acquisition. If that was the case, RPL shareholders would have had to shell out more shares. The response from the market was overwhelming and the issue was oversubscribed by over 50 times. And after the initial gestation period amalgamate it with the parent allowing the parent to hedge the project risk at the time of execution. Hypotheses of the Study: Though the theoretical assumption says that mergers improve the overall performance of the company due to increased market power, Tambi uses his paper to evaluate the same in the scenario of Indian economy.

There is a considerable difference between pre and post merger financial performance. While Mr Choksey did not recall how much he invested in that public issue, the shares that came his way are still with him. RIL will issue 6.


It is observed on the basis sample study that the large and medium sized manufacturing entities are working under threats nad economic environment which is full of problems like inadequacy of resources, outdated technology, non-systematized management pattern, faltering marketing efforts and weak financial structure etc.

Not all shareholders waited for the announcement.

ril and rpl case study

Log In Sign Up. As of December-end, Reliance Power had around 3.

RIL, RPL merger swap ratio set at 1:16, Chevron sells RPL stake

Merger Ratio Although the share swap ratio of 1: The difference was that the issue in was at a premium of Rs 50 without a debenture component attached to it. With the merger ratio pegged at 1: The declining interest coverage ratio of the acquirer company RIL from The earnings multiple of an integrated energy company are far greater than that of a single energy company Mukesh Ambani has yet again followed a strategy that Reliance Group has stuxy using for the last three decades.

After merging RPL in to it in this ratio was increased to The above position has graphically been presented as below: The decline might have been caused by the high costs during merger or because of writing off the losses of RPL. Choose your reason below and click on the Report cae. Usually the shareholders of the parent gained out of such mergers. Enter the email address you signed up with and we’ll email you a reset link.

Reliance Industries’ unlawful gains case and what the fraud is all about

Mergers and Acquisitions may generate tax gains, can increase revenue and can reduce the cost of capital. Lande, “Efficiency Considerations in Merger Enforcement.

ril and rpl case study

The decision is in sync with the pattern at RIL which has merged every company it created, with itself later on. They added that tax benefits to the SEZ cannot be merged with the main company.


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Reliance Industries’ unlawful gains case and what the fraud is all about | Business Standard News

Importance of the study: Mukesh Ambani has yet again followed a strategy that Reliance Group has been using for the last three decades. Mar 3 Their results suggest that there are minor variations in terms of impact on operating performance following mergers, in different industries in India. The principal benefits from mergers and acquisitions can be listed as increased value generation, increase in cost efficiency and increase in market share. He sold his holding in RIL stands to benefit from the depreciation it could show for the RPL refinery to earn additional tax breaks.

The researchers have selected a convenient sample of 01 company. No fresh investment is made through this process.

RIL-RPL merger complete

The boards of RIL and RPL approved the merger, thus, creating the worlds largest refining capacity at a single location and the worlds fifth largest polypropylene manufacturer. This was to create an export-oriented refinery at Jamnagar.

ril and rpl case study

In the process of takeover, the acquiring company decides the maximum price that is to be offered rll the acquired and hence takes lesser time in completing a transaction than in mergers, provided the top management of the acquired company is co-operative. Fill in your details: