A resolution to this effect has been passed unanimously at an extraordinary general meeting (EGM) here on Saturday. Speaking at the EGM, chairman Arvind Mafatlal said that the issue price was likely to go up to Rs 35 a share owing to probable reduction in the company's restructuring expenses. Since the price is fixed for 70 per cent of the company's business, the notional share price works out to Rs 40 per share for Rs 29, and more than Rs 50 a share if the price goes up to Rs 35, he added.

The company will soon obtain the Mumbai high court's approval for its demerger into three units. A senior Nocil official said that an EGM would be convened by December-end for approving the demerger scheme.

Answering shareholders' query on thepost-demerger share split ratio, Mafatlal said that the ratio would approximately be in the ratio of 70:16:14 for petrochemicals, rubber chemicals and the residual company.

The exact split ratio will, however, be determined on auditors' recommendations, he added. Shell and Montell will pick up 49 per cent in the demerged petrochemical entity. The company will evolve a scheme in consultation with the Bombay Stock Exchange to take care of the odd lots generated at the time of share split, he added.

Shell and Montell will work together with Nocil to complete the modernisation project, partially implemented by the company at its manufacturing site in Maharashtra. The company proposes to modernise the naphtha cracker, which will substantially increase capacities of ethylene and propylene. Shareholder value in Nocil will be enhanced with the speedy implementation of the petrochemical project, and there will be an appreciation of the petrochemical price with the growth and profitability of the new company,Mafatlal said.

The company has executed technical-collaboration agreements with various foreign parties for knowhow in respect of downstream products.

These parties have prepared the basic design-engineering package, which will help in putting up the modern petrochemicals plant at the site.