The Bombay Stock Exchange sensitive index, which opened at 8,583.06 today (March 03), declined further to 8,535.08 after hitting high of 8,619.09 and a low of 8,531.40 at 10:10 a.m.

Meanwhile the broad based Nifty lost 13.35 points at 2,661.10 after touching a high of 2,679.10 and a low of 2,654.35.

Indian equities belled the day negatively on funds selling, tracking weak global signals. There was heavy selling across Banking and Consumer Durables stocks.

In the meantime, Auto stocks also saw marginal buying activity.

Wellington  - Th

After merger, every 16 shares in RPL will convert to one in RIL

The Reliance Industries Ltd (RIL)-Reliance Petroleum Limited (RPL) merger is seen by Dalal Street as mostly win-win for all stakeholders.

Though both stocks ended the day down, experts see the deal as beneficial for the companies' shareholders in the near term.

Early on Monday, the RIL board approved a swap ratio of 16:1 for the merger. This means, after approval of the amalgamation by the court, every 16 shares in RPL will get converted into one RIL share.

Start up funds are going in for follow up investments in portfolio companies to avoid playing second fiddle to new investors attracted by low valuations

Fear of becoming minority players in their own portfolio companies is driving many venture capital firms into pumping in more money into them. This follows the almost rock bottom valuations for startup companies owing to the slowdown and cash flush VC firms and angel investors who are attracted to them.

VCs are looking to hold on to their stakes in these companies that have become prime targets for others, point out industry watchers.

The merger of Reliance Industries (RIL) and Reliance Petroleum (RPL) is likely to be earnings per share (EPS) accretive for RIL shareholders by 50 to 150 basis points, analysts have said.

The swap ratio of 1:16 represents a 3.5% premium to RPL’s share price on Friday (Rs 76.20 per share).

RIL bought back Chevron’s stake of 5% in RPL @Rs 60 —- the same price at which it was sold by RIL in 2007, giving promoters complete control of India’s largest private company —- not that Mukesh Ambani was particularly seeking it.

The swap ratio was more or less in line with street expectations, though it tilts a touch towards RPL shareholders.

Fear of becoming minority players in their own portfolio companies is driving many venture capital firms into pumping in more money into them. This follows the almost rock bottom valuations for startup companies owing to the slowdown and cash flush VC firms and angel investors who are attracted to them.

VCs are looking to hold on to their stakes in these companies that have become prime targets for others, point out industry watchers.

One route for this has been to co-invest along with new VC investors to prevent dilution of stakes.