RIL AND RPL CASE STUDY

Generally, the company that survives is the buyer which retains its identity and the seller company is extinguished. The present study is an attempt to find out the difference in post merger financial performance compared with pre merger in terms of profitability and generating more value than the separate firms, resulting in consolidation, refocusing and restructuring of the industry with a motive of faster mechanism. Hypotheses of the Study: The data of just preceding years of the year the merger took place has been considered for pre-merger study and the data for the year has been used for post merger study. Lande, “Efficiency Considerations in Merger Enforcement. Not all shareholders waited for the announcement.

If that was the case, RPL shareholders would have had to shell out more shares. Hypotheses of the Study: The Thomson Reuters Trust Principles. Mar 3 , The response from the market was overwhelming and the issue was oversubscribed by over 50 times.

RIL-RPL merger complete

An acquisition, alternately, is aimed at gaining a controlling interest in the share capital of the acquired company. RPL, then went public late that year to raise funds with a public issue of Rs crore, making it among the largest for the time.

Help Center Find new research papers in: The researchers have selected a convenient sample of 01 company. Though the theoretical assumption says that mergers improve the overall performance of the company due to increased market power, Tambi uses his paper to evaluate the same in the scenario of Indian economy.

The boards of RIL and RPL approved the merger, thus, creating the worlds largest refining capacity at a single location and the worlds fifth largest polypropylene manufacturer.

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The content may not be copied, broadcast, downloaded and stored in any mediumtransmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited. Chevron no longer required large quantities of the product in its system.

Usually, one company will buy another and, as part of the deal’s terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it is technically an acquisition.

Related It’s advantage RPL in 1: Agarwal said it was Chevrons decision to exit RPL.

ril and rpl case study

Their results suggest that there are minor variations in terms of impact on operating performance following mergers, in different industries in India. This was to create an export-oriented refinery at Jamnagar. After merging RPL in to it this ratio was decreased to 9.

Mergers result in the combination of two or more companies into one, wherein merging entities lose their identities.

After concluding the results of this study, it is found appropriate to put the following suggestions: Enter the email address you signed up with and we’ll email you a reset link. Written anf Corporate Bureau Mumbai Updated: Lande, “Efficiency Considerations in Merger Enforcement.

Company sources said the split was a mutually agreed, and was meant to take on the impact of the changing global oil market dynamics.

The study concluded that control firm adjusted long-term operating performance following mergers in case of Japanese firms was positive but insignificant and there was a high correlation between pre and post-merger stuey. Remember me on this computer. The principal benefits from mergers and acquisitions can be listed as increased value generation, increase in cost efficiency and increase in market share. Taking into consideration these important facts, the researchers have undertaken this study.

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ril and rpl case study

Choose your reason below and click on the Report button. Some analysts are also indicating clear advantage in gross refining margins GRMsat a time casse such margins are under pressure globally.

RPL closed at Rs There is a considerable difference between pre and post merger financial performance. Not all shareholders waited for the announcement. They added that tax benefits to the SEZ cannot be merged with the main company.

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This was to have a combination of equity shares and debentures. The declining interest coverage ratio of the acquirer company RIL from RIL shares were down 3.

By examining the cash-flow performance in the five-year period following mergers, the study stuyd evidence of improvements in operating performance, and also that the pre and post-merger performance was highly correlated.

The response from the market was syudy and the issue was oversubscribed by over 50 times. It is observed on the basis sample study that the large and medium sized manufacturing entities are working under threats from economic environment which is full of problems like inadequacy of resources, outdated technology, non-systematized management pattern, faltering marketing efforts and weak financial structure etc.