Saturday, February 13, 2021

Effects of Demergers and Mergers while claiming shares from IEPF ( Investor Education and Protection Fund)

In India, there are lots of people approaching Companies and IEPF for claiming Shares and Dividends of their or of their family members their own without knowing the procedure forget about the legal part. In this process, they waste lots of time, and during this endeavor, they get so frustrated that they left it in between. They end up wasting money and most important time, even if they succeed most of the time that is too partial because they are not aware of what merger or demerger the company went through in the past.
For example, Reliance has merged or demerged around 10 companies. (Some of them are Sidhpur Mills Company Limited merged in 1979, Reliance Petrochemicals in 1992, Reliance Polyethylen Limited (which we used to call RPEL or ILU in normal conversation), and Reliance Polypropylene Limited (RPPLor PILU) in 1992, and in 2002 again another company by the name of Reliance Petrochemicals ( It is not the same which got merged in 1992) in 2007 Indian Petrochemicals Limited (IPCL) these are few companies which got merged with Reliance. There is again a big list of companies that emerged from Reliance due to the split-up of Mukesh Ambani and Anil Ambani. The name of those companies which came in existence is Reliance Communication Ventures Limited, Reliance Natural Resources Limited, Reliance Capital Ventures Limited and Reliance Energy Ventures Limited. 
This is the history of Reliance which is the biggest company in India ( Market Capitalisation wise) which has so many twists of mergers and demergers, but What about other industrial houses like TATA group ( It too has a long list of mergers and demergers few of them like TATA Oil, Lakme, Trent, Hindustan Lever (HLL) which now called Hindustan Unilever, ACC( in the stock market it used to be known as Merger because it was created by merging around 13 cement companies). 
To be continued .....................

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