Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Stock Report

| More

Reliance to transfer Gasification Undertaking to subsidiary

Posted On: 2021-11-24 23:19:10 (Time Zone: IST)


The Board ('the Board') of Reliance Industries Limited ('the Company' or 'RIL') has today decided to implement a Scheme of Arrangement (Scheme) to transfer Gasification Undertaking into a Wholly-Owned Subsidiary (WOS).

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). This enables production of olefins at competitive capital and operating costs. Syngas as a fuel ensures reliability of supply and helps reduce volatility in the energy costs. Syngas is also used to produce Hydrogen for consumption in the Jamnagar refinery.

RIL targets to have a portfolio which is fully re-cyclable, sustainable and net carbon zero. This will be achieved by transitioning to high value materials and chemicals with renewables as the source of meeting its energy requirements. As RIL progressively transitions to renewables as its primary source of energy, more syngas will become available for upgradation to high value chemicals including C1 chemicals and Hydrogen. Further, carbondi-oxide released during the process of producing Hydrogen is highly concentrated and easy to capture, substantially reducing the cost of carbon capture. Overall, these steps will help sharply reduce carbon footprint of Jamnagar complex.

India is a high growth market and is expected to continue to see a deficit of these high value chemicals in the foreseeable future. Repurposing the Gasification assets will help use syngas as a reliable source of feedstock to produce these chemicals and cater to growing domestic demand, resulting in an attractive business opportunity. Further, as the hydrogen economy expands, RIL will be well positioned to be the first mover to establish a hydrogen ecosystem.

With optionality in applications for Syngas, the nature of risk and returns associated with the gasifier assets will likely be distinct from those of the other businesses of the Company. This distinct business profile also provides the opportunity to potentially attract a different pool of investors and strategic partners for the gasification assets and new materials and chemicals projects.

The Board has accordingly approved a Scheme to transfer the Gasification Undertaking as a going concern on slump sale basis for a lump sum consideration equal to the carrying value as on the Appointed Date.

The Scheme will also enable RIL to evaluate unlocking the value of syngas, with a collaborative and asset-light approach involving (a) Induction of investor(s) in the gasifier subsidiary and (b) Capturing value of upgradation in RIL through partnerships in different chemical streams.

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.

Shares of Reliance Industries Limited was last trading in BSE at Rs. 2350.90 as compared to the previous close of Rs. 2386.15. The total number of shares traded during the day was 1856369 in over 26324 trades.

The stock hit an intraday high of Rs. 2410.85 and intraday low of 2344.00. The net turnover during the day was Rs. 4405560866.00.


Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Timex Group India Limited receives LOI for Guess and GC brand of watches

SMS Lifesciences India Ltd to divest partial stake in Mahi Drugs Pvt Ltd

Rail Vikas Nigam Ltd enters into MoU for railway projects in Kyrgyzstan

Yaarii Digital Integrated Services Ltd changes name

NMDC Ltd revises iron ore price from Nov 30, 2021

Edelweiss Financial Services announces Rs. 5,000 million Public Issue of Secured Redeemable NCDs

B N Rathi Securities Ltd fixes Dec 17, 2021 as record date for rights issue

UltraTech Cement Ltd commences mining from Bicharpur Coal Block

Wipro Recognized as 'Gold' Employer by India Workplace Equality Index (IWEI) 2021

India Pesticides Ltd allotted additional land adjacent to Sandila Plant

TCS launches Assessment and Migration Factory for AWS Mainframe Modernization

Oriental Aromatics Ltd board declares interim dividend of Rs. 1.5

Dilip Buildcon Ltd declared as Ll bidder for EPC project in Bilaspur, Himachal Pradesh

Sun Pharma arm DUSA to get $22.5 mn from Biofrontera for settlement of litigation

NIIT's subsidiary, RPS Consulting appoints Francis Jacob as President and Business Head

Maruti Suzuki India Limited increases price of EECO non-cargo variants

Abirami Financial Services India Ltd board to consider monetization of asset

BHEL wins CII-Exim Bank Platinum Awards for Business Excellence

V-Mart Retail Ltd opens one new store in Haryana

Vidli Restaurants Limited board approves rights issue at Rs. 10

Innovators Facade Systems Limited receives order from DLF Group

Infosys collaborates with One of Europe's Greenest Data Centers to accelerate Daimler's transition to Sustainable Mobility

Dharamsi Morarji Chemical Company Ltd to list in NSE from Dec 1, 2021

Fitch affirms Axis Bank at 'BB+', Outlook Negative

TCS helps AGL embrace New AI-powered Operating Model to transform Customer Experience

Dhruv Consultancy Services Limited receives LOA for project worth Rs. 5.04 crore

Arvind Ltd update on Ankur unit

Lupin launches Sciflix a mobile-friendly learning platform for post graduate students specializing in pulmonology

ICRA-assigned Credit Rating for 100.00 crore bank lines of Rane Holdings Limited

ITI Limited installs 100 KW Captive Rooftop Solar Power Plant in Lucknow, Uttar Pradesh

GIC to invest in IRB Infrastructure Developers Limited

Vishvprabha Ventures Ltd Fixes Record Date for Rights Issue of equity shares

Earum Pharmaceuticals Ltd fixes Record Date for Stock Split

ICRA upgrades credit rating of DLF Limited to [ICRA] AA- with Stable outlook

IIFL Home Finance Ltd disbursed loans over Rs. 2500crore, as on 30 September, 2021

Kotak Mahindra Bank reaches One Million FASTags Milestone

Accor renews partnership with IndiGo's 6E Rewards program to offer accelerated travel and stay benefits

Rossari Biotech Ltd. appoints Ketan Sablok as the Group Chief Financial Officer

Vedanta's Sesa Goa Iron Ore Business pledges to become carbon neutral by 2050

CL Educate liquidates third land parcel this year

Reliance Capital Ltd welcomes RBI move to resolve company's debt through IBC

Knowledge Marine & Engineering Works Ltd receives LoA from Vizag Port Trust for patrol boat

Patel Integrated Logistics Ltd board to consider rights shares allotment on Dec 2, 2021

Tatva Chintan Pharma Chem Ltd acquires land at Dahej-III GIDC Estate, Bharuch

Intec Capital Ltd accepts OTS proposal from The Bank of Maharashtra

Sayaji Hotels Ltd arm signs 8 new properties

Coal India Ltd board declares interim dividend of Rs. 9

BSL Ltd updates on credit rating

Ratnamani Metals & Tubes Ltd receives new Domestic Orders of Rs.297.87 Crores

TCS Named a Leader in IDC MarketScape for Worldwide Managed Multicloud Services


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020