New Delhi: Shares of Reliance Industries (RIL) surged over 5 per cent on Thursday after its board decided to implement a plan of arrangement to transfer the gasification undertaking to a wholly-owned subsidiary.
As of 12:39 pm, RIL’s stock was up 5.40 per cent at Rs 2,477.90 on the BSE index.
“The Board announced on November 24 that it has decided to implement a plan (scheme) of arrangement for transfer of the gasification undertaking to a wholly owned subsidiary (WOS),” the company said in a release.
It has decided to implement a scheme of arrangement between RIL and its shareholders and creditors; and Reliance Syngas (RSL) and its shareholders and creditors.
RSL is a wholly owned subsidiary of Reliance. RIL has invested Rs 10 lakh in cash in 1 lakh equity shares of Rs 10 each of RSL.
The gasification project at Jamnagar was set up with the objective of producing syngas to meet the energy requirements, as the refinery off-gas, which earlier served as fuel, was set up by the Refinery of Gas Cracker (ROGC), the company said. ) was converted into feedstock. ,
“This enables production of olefins at competitive capital and operating costs. Syngas as a fuel ensures supply reliability and helps reduce volatility in energy costs. Syngas is used for hydrogen consumption at the Jamnagar Refinery. also used to produce.
RIL mentioned that the due date of the scheme would be March 31, 2022 or “such other date as may be prescribed by the Board.”
The scheme would require approval of stock exchanges, creditors, shareholders, NCLT and other regulatory authorities, it further said.
Earlier this week, RIL’s stock fell 4.2 per cent on Monday as the country’s largest firm decided to halt stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia’s Aramco and Was pulled from the potential spinoff. of its most profitable unit.