Corporate Mergers: Shell Game

Reliance Power’s merger with RNRL will mean little to either company. It also underlines how wrong the market can be on a stock’s value

On 4th July, the boards of Reliance Natural Resources (RNRL) and Reliance Power approved a merger between the two companies. Consulting firm KPMG valued RNRL at Rs7,157 crore, leading to a share-swap ratio of 4:1. The market expected a share-swap ratio of 3:1,...

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