RIL AND RPL MERGER CASE STUDY

RIL AND RPL MERGER CASE STUDY

The above Table shows the position of Reliance Industries Ltd. Wait for it… Log in to our website to save your bookmarks. Thus, a book value based swap ratio does not serve any purpose in this case. The test for difference of mean shows non significant difference in the debt equity ratio of two merger companies i. 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.

The following 4 major financial ratios and their means were calculated for analyzing the financial performance of the companies: Being bought out often carries negative connotations, therefore, by describing the deal euphemistically as a merger, deal makers and top managers try to make the takeover more palatable. The study has been undertaken to contribute towards the following broad Objectives: Taking into consideration these important facts, the researchers have undertaken this study. Though researchers have made a humble attempt to encompass the pre and post merger performance of the selected sample merger case, it is difficult to narrate all incidents and changes brought up due to mergers and acquisitions and therefore necessary inferences are inserted wherever required. Below is the analysis from top brokerage houses across the country on the deal and who stands to benefit in the scheme of arrangement.

Enter the email address you signed up with and we’ll email you a reset link. The principal benefits from mergers and acquisitions can be listed as increased value generation, increase in cost efficiency and increase in market share.

Merged entity can fuel Rol for months. USD Period of Study: Following the demerger of the Reliance empire in Junethe Mukesh Ambani-owned group hit the capital markets in April with a public offering from RPL.

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RIL-RPL merger: Who benefits?

Find this comment offensive? This was the first step in making Jamnagar the refining hub, and over time, additional capacity was put in place. The test for difference of mean was applied to check whether the difference in the pre merger and post merger was significant acse not. Who benefits from the merger?

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ril and rpl merger case study

Though researchers have made a humble attempt to encompass metger pre meger post merger performance of the selected sample merger case, it is difficult to narrate all incidents and changes brought up due to mergers and acquisitions and therefore necessary inferences are inserted wherever required.

The researchers have made an attempt to study the impact of Mergers on financial performance of the sample company by using the available information for the period to This will alert our moderators to take action. Related It’s advantage RPL in 1: At Rs1, the stock is trading at 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 meger equals, even if it is technically an acquisition.

ril and rpl merger case study

The test for difference of mean shows non significant difference in the debt equity ratio of two merger companies i. 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.

ril and rpl merger case study

Taking into consideration these important facts, the researchers have undertaken this study. RIL currently holds The decline might have been caused by the high costs during merger or because of writing off the losses of RPL. Alternatively, if RPL would have been maintained as a separate entity and had paid dividend to RIL, it would have attracted dividend distribution tax of Cqse declining interest coverage ratio of the acquirer company RIL from The study has been undertaken to contribute towards the following broad Objectives: In pursuit of this growth strategy, rll often change their organization and basic operating characteristics to meet the diversified businesses and management.

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History repeats with RIL-RPL merger

It’ll just take a moment. The above Table shows the position of Reliance Industries Ltd. In the process of takeover, the acquiring company decides the maximum price that is to be offered to the acquired and hence takes lesser time in completing a transaction than in mergers, provided the top management of the acquired company is co-operative.

After merging RPL in to it in this figure was decreased to This was to create an export-oriented refinery at Jamnagar. Mergers result in the combination of two or more companies into one, wherein merging entities lose their identities.

RIL-RPL merger: Who benefits?

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. Due to the existence of strict government regulations, Indian companies were forced to go to new areas where capabilities are difficult to develop in the short run.

Mergers studyy Acquisitions stjdy considered as one of the strategies for growth which have emerged as a natural process of business restructuring throughout the world. 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 performance. After merging RPL in to it this ratio was decreased to 9. Angel Broking RIL currently holds