Indian Oil Corporation (IOC), the countrys largest oil refiner, will merge its subsidiary Bongaigaon Refinery & Petrochemicals Ltd (BRPL) with itself, at a share swap ratio of 4:37. In a notice on the Bombay Stock Exchange, IOC said its board of directors on Wednesday approved the scheme of amalgamation for merger of BRPL with the company by recommending a swap of four equity shares of Rs 10 each of IOC for every 37 equity shares of the same value of BRPL. The scheme is, however, subject to the approval from the government and other regulatory approvals. The shares of IOC were trading at Rs 472, down 2.20% on the BSE on Wednesday.
IOC holds 74.46% stake in BRPL, which owns a 2.35 million tonnes per annum refinery in Assam and other petrochemical units. In June 2005, the IOC board had recommended to the government that BRPL be merged with the company.
IOC has registered a net operating profit of Rs 3,050 crore for the second quarter of the current financial year ended September 2006 as compared to Rs 949 crore for the same quarter in the previous year.