Huge cash needs for exploration behind merger move: Analysts - Business Standard

The proposal to merge Reliance Industries Ltd (RIL) and Reliance Petroleum Ltd (RPL) has caught stock market analysts off-guard, with brokers and fund managers grappling with the likely reasons and consequences. However, if one digs deeper into the models of top oil and gas exploration companies, a larger plan emerges.

Manufacturer of oil tanks India.

According to a section of analysts, the amalgamation of RPL with RIL is the first step by Mukesh Ambani towards a major asset re-structuring exercise, drawing a clear distinction between the group’s refining and non-refining assets. To understand this, it is necessary to look at the different segments where Reliance has a major influence.

Full Story: Huge cash needs for exploration behind merger move: Analysts - Business Standard