Shares of Reliance Industries gain more than 5% when transferring commitment to gasification to a subsidiary

Reliance Syngas is a wholly owned subsidiary of RIL.

New Delhi: Shares of Reliance Industries (RIL) jumped more than 5% on Thursday after its Board of Directors decided to make an arrangement to turn Gasification Underfill into a 100% owned subsidiary.

As of 12:39 pm, RIL stock was up 5.40% at Rs 2,477.90 on the BSE index.

“The Board of Directors on November 24th announced that it has decided to make an arrangement (Scheme) to transform Gasification Company into a 100% owned subsidiary (WOS),” the company said. stated in a statement.

It decided to implement a settlement scheme between the RIL and its shareholders and creditors; and Reliance Syngas (RSL) and its shareholders and creditors.

RSL is a wholly owned subsidiary of Reliance. RIL invested Rs 10 lakh cash in Rs 10,000 equity shares worth Rs 10 each.

“The Jamnagar Gasification Project was established with the objective of producing syngas to meet energy requirements when refinery by-gases, formerly used as fuel, are reused as raw materials. fuel for Oil and Gas Refinery (ROGC),” the company said.

“This enables the production of olefins with competitive capital and operating costs. Syngas as a fuel ensures supply reliability and helps reduce fluctuations in energy costs. Syngas is also used. used to produce Hydrogen for consumption in the Jamnagar refinery”.

RIL mentions that the program’s designated date will be March 31, 2022, or “other date as may be determined by the board.”

The scheme would require approval from stock exchanges, creditors, shareholders, NCLT and other regulators, it added.

Earlier this week, RIL shares tumbled as much as 4.2% on Monday when the country’s largest company decided to stop selling a stake in its oil-chemicals (O2C) business to Saudi Arabia’s Aramco -withdraw and withdraw from a potential bankruptcy. of its most profitable unit.