New Delhi: Reliance Industries (RIL) shares surged than 5 per cent on Thursday after its Board decided to implement a scheme of arrangement to transfer Gasification Undertaking into a wholly-owned subsidiary.
As of 12:39 pm, RIL stock was up 5.40 per cent at Rs 2,477.90 on the BSE index.
“The board on November 24 announced that it has decided to implement a scheme of arrangement (Scheme) to transfer Gasification Undertaking into a wholly-owned subsidiary (WOS),” company stated 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 to produce syngas to meet the energy requirements as refinery off-gases, which earlier served as fuel, were repurposed into feedstock for the Refinery Off Gas Cracker (ROGC),” the company said.
“This enables production of olefins at competitive capital and operating costs. Syngas as a fuel ensures reliability of supply and helps reduce volatility in energy costs. Syngas is also used to produce Hydrogen for consumption in the Jamnagar refinery,” it added.
RIL mentioned that the appointed date of the scheme would be March 31, 2022 or “such other date as may be determined by the board.”
The scheme will require approval of stock exchanges, creditors, shareholders, NCLT and other regulatory authorities, it further stated.
Earlier this week, the RIL stock had plunged as much as 4.2 per cent on Monday as the country’s largest firm decided to halt a stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia’s Aramco and pulled back from a potential spinoff of its most profitable unit.