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RIL Announces Demerger of Its O2C Business

Editor, TRANSFIN.
Invalid date 2 min read
Editorial

In a late-night filing, Reliance Industries Ltd (RIL) announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.

 

What's Going On?

The conglomerate has already received approval from SEBI and stock exchanges for hiving off Reliance O2C. It is now seeking the consent of the NCLT, shareholders and creditors. All in all, it expects the approval process to wind up by Q2FY22.

 

A Petro-Tsar is Born

The proposed new entity would control all of RIL’s refining, marketing and petrochemical assets and be funded by a $25bn interest-bearing loan from the parent. The 100% subsidiary would also be given control of fuel retail (51:49 JV with BP) and global subsidiaries of its parent.

RIL O2C numbers.

 

Sub-heading 1

RIL, meanwhile, would keep the upstream exploration and production business, financial services, group treasury and the legacy textile businesses, and act as a holding company of the Group. According to Fitch, the demerger will have no impact on RIL's credit metrics and ratings.

FYI: RIL’s other major businesses - telecom and retail - have already been spun off into their own entities. Jio Platforms and Reliance Retail Ventures respectively.

 

Heading 2

In a late-night filing, Reliance Industries Ltd (RIL) announced the demerger of its oil-to-chemicals (O2C) business into a wholly-owned subsidiary.

The conglomerate has already received approval from SEBI and stock exchanges for hiving off Reliance O2C. It is now seeking the consent of the NCLT, shareholders and creditors. All in all, it expects the approval process to wind up by Q2FY22.

 

Heading 3

The conglomerate has already received approval from SEBI and stock exchanges for hiving off Reliance O2C. It is now seeking the consent of the NCLT, shareholders and creditors. All in all, it expects the approval process to wind up by Q2FY22.

FIN.
 

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