Mumbai: The shareholders and creditors of Indian Petrochemicals Corp. Ltd (IPCL) have approved the merger of the company with the country’s largest petrochemical firm, Reliance Industries Ltd (RIL).
Shareholders and creditors—both secured and unsecured—had approved the merger with RIL at a court-convened meeting on 14 April, IPCL informed the Bombay Stock Exchange.
IPCL on 18 April also filed a petition with the Gujarat high court for getting approval for the scheme.
The boards of directors of RIL and IPCL had on 10 March approved the merger of both companies.
Reliance Industries and its associate companies hold 47.3% of IPCL’s equity share capital. RIL acquired equity shares of IPCL in June 2002 during the then government’s disinvestment programme.
RIL has said the merged entity would create greater value for shareholders than they could as separate companies.
However, a section of IPCL shareholders had opposed the merger during the 14 April meeting.
Some had even told the presiding Justice S.D. Dave that the poll process was illegal as coercive methods had been used to obtain signed proxy forms from IPCL employees, who are its shareholders under the employee stock option scheme. They were also against the 2006 merger of six sick units into IPCL, which they alleged, was undertaken to decrease the profitability of the company.