Mumbai (Maharashtra) [India], February 23 (ANI): Reliance Industries Ltd (RIL) has initiated the method to maneuver its oil-to-chemicals (O2C) enterprise into an impartial subsidiary and can retain 100 per cent administration management.
All of refining, advertising and petrochemical property can be transferred to the O2C subsidiary, it mentioned in regulatory filings at inventory exchanges late on Monday.
The promoter group will proceed to carry a 49.14 per cent stake within the O2C enterprise and the method will lead to no change in shareholding of the corporate.
“The present O2C working group will transfer to the newly-created subsidiary with the switch of enterprise, however there can be no dilution of earnings or any restriction on the money flows,” mentioned RIL.
RIL and its O2C subsidiary will work collectively to maneuver in the direction of the web carbon zero targets by 2035. The O2C enterprise will put money into the next-generation carbon seize and storage applied sciences to transform carbon dioxide into helpful merchandise and chemical substances.
It would additionally speed up the transition from conventional carbon-based fuels to a hydrogen financial system, RIL mentioned including the event could have no impression on its consolidated monetary place, price of capital, borrowings, investment-grade worldwide and home AAA credit score scores.
The transfer will facilitate worth creation by means of strategic partnerships, together with the cope with Saudi Aramco, and appeal to devoted swimming pools of investor capital.
The corporate mentioned that talks with Aramco — the world’s largest crude oil exporter — to amass 20 per cent stake in RIL’s O2C enterprise are nonetheless on.
Varied approvals for the reorganisation to be in place by the second quarter of FY22. Following the reorganisation, RIL’s stake in Reliance Retail Ventures can be 85.1 per cent and in Jio Platforms 67.3 per cent. (ANI)
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