Mukesh Ambani-led Reliance Industries Ltd wants to merge four of its associate companies in real estate with its main property development subsidiary, Reliance Commercial Land and Infrastructure Ltd, under the scheme of amalgamation proposed before the Bombay High Court.
While a company spokesperson declined to comment on the matter, senior executives with top audit firms say the company could do it for various reasons such as getting investors in the main operating company and ensuring cost efficiencies.
"The company might want to get investors in the holding company or move assets to the parent company.
"It could also be that the smaller companies were not doing any business and the merger could give them cost efficiencies," said a top executive with a global audit firm, who did not want to be identified.
Another executive with another large audit firm, who also requested anonymity, said: "I think, instead of closing the smaller firms, they are merging them with bigger company.
"It would also help them in listing the company or get investors."
In the petition, the company said it wanted to merge Reliance Hyper Realty Ltd, Reliance Commercial Realty Assets Ltd, Reliance Gen Next Commercials Pvt Ltd and Reliance New Gen Commercials Pvt Ltd with RCLIL.
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