So this will increase the share prices due to this positive movement. Below is the analysis from top brokerage houses across the country on the deal and who stands to benefit in the scheme of arrangement. RIL already earns two-thirds of its revenues from refining, an industry that is facing a multi-year cyclical downturn. Skip to main content. It is important to critically evaluate the Results and the whole study on the primary data. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Most of the gain accrued to the RPL shareholders and the combined excess return of the merged entity was found to be negative.

You just clipped your first slide! See our User Agreement and Privacy Policy. So this will not make any great change in the share price of the RIL. Visibility Others can see my Clipboard. In this research report there are certain things which need to be explored and should be investigate at a big approach. Thus, the proposed merger would help RIL utilise this Cash flows in its other business verticals in a fruitful manner.

Successfully reported this slideshow. So this again will not move the prices of share.

I believe the deal is a win-win situation for both companies, as RIL will have improved Cash-flow, stronger Balance Sheet and lower cost of capital post merger. Mergers and Acquisitions in Europe. Are you sure you want to Yes No. The Case of Ril and Rpl Merger. The present study has certain limitations that need to be taken into account when considering the study and its contributions.

Ril Rpl Merger 1. Swara Bhasker swears off smoking on screen after Veere Di Wedding.

RIL-RPL merger: Who benefits? – Livemint

Section I provides the background of the deal, Section II presents the literature survey, scope of the study, data and methodology and finally the empirical results and conclusions are presented in Section III. Related eJournals Corporate Finance: From the above discussion, we will conclude that how the share price of RIL will get move or change after the merger. It is also imperative to evaluate the actual cost benefit of the target valuation.

Now customize the name of a clipboard to store your clips. A merger may create or destroy shareholder value. The high court will hear the application in a week at the earliest. Subscribe to this fee case study on merger of ril and rpl for more curated articles on this topic. The beneficiary of the merger would depend on the swap ratio. Below is the analysis from top brokerage houses across the country on the deal and who stands to benefit in the scheme of arrangement.

Cross-Border Mergers and Acquisitions in India. If efficient market hypothesis ,the market is move according to the rumors ,but Indian market is known as the semi strong formmarket hypothesis ,means that the prices of shares already reflected all the past information and corporate actions. You just clipped your first slide!

Return to Shareholders from Mergers: The Case of Ril and Rpl Merger

No notes for slide. Thus, a book value based swap ratio does not serve any purpose in this case. See our Privacy Policy and User Agreement for details.

The merger will enhance value for shareholders of both companies. Historically every company that Reliance Industries Ltd has floated has been folded into the mothership at some stage. To decline or learn more, visit our Cookies page. Both the companies have lots of benefit and synergy between each other.

A Critical Analysis on RIL-RPL Merger – minglebox | Blogs

We believe swap ratio in the range of x will be Neutral for both companies. Unparalleled Refining Efficiency 6. Visibility Others can see my Clipboard.

Stock Ideas Money Matters Equities. However, a merger may destroy shareholder value if the merger outcomes are deficit of what a shareholder could have achieved by altering his investment portfolio.

Merger has no rating impact on RIL: Mon, Mar 02 Skip to main content. Merger ratio favours RPL shareholders: See our User Agreement and Privacy Policy. Academics have discussed for many years a crucial question, whether a merger or an acquisition creates shareholder’s value?