Nitin Parikh of Nitin Parikh & Company said that there is every possibility that RIL, a profit making entity, is merging with RPL (which is a loss-making company) to get SEZ status for RIL’s ol
Refiner’s cash flows, tax sops will come in very handy in these tough times
Legend has it that during a routine lunch with his sons in the winter of 2001, the late Dhirubhai Ambani, who was 69 years old then, first sounded out the idea of a merger between Reliance Industries (RIL) and Reliance Petroleum Ltd.
RIL was then into petrochemicals business, while RPL was refining crude oil.
The motive was clear: a merger engendered sales tax benefits, depreciation benefits and a much stronger balance sheet.
A couple of months later, on April 8, 2002, the merger sailed through with 99.5% of shareholders giving their approval.
Slowdown has hit the realty sector rather hard. Infrastructure projects too have slowed down somewhat. But Ajit Gulabchand, chairman and managing director of Hindustan Construction Co Ltd (HCC), is not worried. The company is going full throttle on its ambitious Lavasa lake city project and has also bid for the Worli-Haji Ali sealink project. In a chat with DNA Money's Ashish K Tiwari and G Seetharaman, Gulabchand elaborates on the reasons behind these moves. Excerpts…
On Friday, the government said GDP grew 5.3% last quarter. How did you react to this news?
will first evaluate costs and client willingness to increase onsite work
MphasiS Ltd, the Bangalore-based IT services firm that is now a part of international technology giant Hewlett-Packard, may add more Americans to its workforce to avail the tax breaks announced by US President Barack Obama on February 25.
Speaking to DNA Money, Ganesh Ayyar, chief executive officer, MphasiS Ltd, said, "The option of increasing Americans in our workforce is open to us in view of the recent announcements by US authorities. However, we will have to factor in many other things before that, like onsite cost versus margins. We also have to evaluate client willingness."
The board of directors of Reliance Industries (RIL), India's largest private company, and Reliance Petroleum (RPL) are set to meet on March 2 to consider a merger of the two companies.
RIL currently holds 70.6% in RPL.
More clarity on the swap ratio is expected to emerge on Monday. For the moment, many feel the move will benefit RIL's shareholders more than those holding RPL shares.
RIL is currently trading at Rs 1,265.05 per share, while RPL trades at Rs 76.20 per share. On that basis, the swap ratio works out to one share of RIL for 16.6 shares of RPL.
On the basis of book value, the swap ratio is expected to be around 20 shares of RPL for every one share of RIL.
The stock of Ranbaxy Laboratories fell 18% to Rs 169.95 per share on Thursday after the company received a letter from the US Food and Drug Administration (USFDA) charging the company with falsifying data and test results in pending and approved ANDAs (abbreviated new drug applications) from its Paonta Sahib facility. The decline came on a day the Sensex rose 0.59%.
The USFDA has invoked the Application Integrity Policy (AIP), which questions the integrity of data in drug applications at the Paonta Sahib facility. Somewhat comfortingly, the USFDA does not have any evidence that imply the drugs do not meet quality requirements. Nor has the regulator found any evidence of health risks from the products.
