Reliance Gas + IPCL Merger

The government appears set to approve Reliance Industries‘ pricing formula for the gas it plans to produce from July next year from KG basin with minor changes. The empowered Group of Ministers (eGoM), which had its third meeting today morning, was near unanimous on the need to honour the government’s commitment to allow marketing and price freedom to investors in oil and gas, reports suggest. The eGoM has left the final decision on RIL’s gas pricing to External Affairs Minister Pranab Mukherjee.

Meanwhile, RIL board of directors fixed 12 October 2007 as the record date for the purpose of determining the shareholders of Indian Petrochemicals Corporation (IPCL) who will be entitled to receive equity shares RIL in terms of the scheme of amalgamation. RIL will issue its 1 equity share of Rs 10 each for every 5 equity shares of the IPCL held on record date.

Reliance Industries stock hit a life time high crossing Rs 2,000 and is currently traded at Rs 2,015.