Haldia Petrochemicals seeks to merge cracker units with itself

摘要

HALDIA Petrochemicals Ltd. (HPL), controlled by Purnendu Chatterjee's The Chatterjee Group (TCG), has proposed the amalgamation of wholly-owned subsidiaries Haldia Cracker (HCCL) and Bengal Cracker (BCCL) with itself. The company and its subsidiaries approached the Calcutta High Court in April for approval of the scheme. The subsidiaries were created to run parts of the plant and attract investments. The merger proposal has already been approved by bankers. Banking industry experts say the merger will increase the revaluation reserve of the company, thereby increasing its net worth. Additionally, the merger may plug the scope of tax leakages on account of business transactions within subsidiaries or between the subsidiaries and the holding company.