Mumbai, Jan. 17: A swap ratio of 1:2.25 has been proposed for the merger of Kochi Refineries (KRL) with Bharat Petroleum Corporation (BPCL).

Kochi Refineries? shareholders will get four shares of BPCL for every nine held by them. The swap proposal, which was cleared at the board meeting today, will have to be approved by the government, shareholders and creditors of the two companies, apart from other judicial and regulatory authorities.

On the BSE today, the BPCL scrip opened at Rs 402, rose to an intra-day high of Rs 415.50 and closed at Rs 410.80. The KRL stoke opened at Rs 220.90, rose to a high of Rs 229.40 and finished the day at Rs 220.70.

In August last year, BPCL had indicated the possibility of merging KRL with itself. BPCL chairman S. Behuria had then said such an amalgamation would improve BPCL?s bottomline due to a high refining margin enjoyed by Kochi Refineries.