Shares of Reliance Industries settled jumped well over 6 percent on Thursday, a day after the conglomerate announced that its board has decided to implement a Scheme of Arrangement (Scheme) to transfer Gasification Undertaking into a wholly-owned subsidiary (WOS).
“Repurposing the Gasification assets will help use syngas as a reliable source of feedstock to produce these chemicals and cater to growing domestic demand, resulting in an attractive business opportunity,” the statement read.
According to the company, as the hydrogen economy expands, RIL will be well positioned to be the first mover to establish a hydrogen ecosystem.
The Scheme will also enable RIL to evaluate unlocking the value of syngas, with a collaborative and asset-light approach involving induction of investor(s) in the gasifier subsidiary and capturing value of upgradation in RIL through partnerships in different chemical streams, the company said.
The appointed date of the Scheme is March 31, 2022.
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Note: The story has been updated with RIL share closing price
(Edited by : Ajay Vaishnav)
First Published: IST