New Delhi: Reliance Industries Limited (RIL), led by Mukesh Ambani, has announced the separation of its oil-to-chemicals (O2C) business from the group and a new wholly-owned entity for the same. The company said that by the second quarter of the financial year 2021-22, a new company would be started for O2C business.

It is being told that the name of the new company will be Reliance O2C Limited. Reliance said it would sell 20% stake in the new company to Saudi Arabian oil company Aramco and make it its partner. Reliance said the new unit would include businesses such as petrochemical, gas, fuel retailing. The company said Demerger will help explore new opportunities in the O2C business. This demerger is expected to get all the approvals by the second quarter of FY 2022. RIL will give a loan to this new subsidiary for 10 years. The company will provide a loan of $ 25 billion to the new subsidiary. With the loan amount, the subsidiary will buy the O2C business. However, the loan for O2C business will remain with RIL.

In the information sent to the stock exchanges, RIL has stated that the proposed reorganization of its O2C business will not change the shareholding structure of the company. The shareholding will remain the same as before. The promoter group's shareholding in the company will be 49.14%, domestic individual investors (public) holding 12.54%, foreign institutional investors holding 24.49% and other-holding at 13.83%.

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