BPCL's Bina-IPO worth 2000 cr to hit market by March 2008

Mumbai, Sep 20 (UNI) Bharat Petroleum Corporation Limited (BPCL) plans to launch initial public offering (IPO) of nearly Rs 2000 crore for its Bina refinery plant in Madhya Pradesh, which will hit the market by early March 2008.

This was confirmed by the BPCL Chairman and Managing Director Ashok Sinha, here last evening at the Compay's post annual general meet (AGM) media meet.

The Bina-IPO will be launched in March 2008 and the fund raised will be utilised for implementation of the 6 million metric tonnes per annum (MMTPA) capacity grass-root Bharat-Oman Refinery project at Bina in MP, Mr Sinha said adding, ''The joint venture vehicle implementating the project at Bina has assumed the challenging target of December 2009 for the mechanical completion of the refinery.'' The refinery has been derived as a separate company, Bharat-Oman Refinery, in which BPCL holds 50 per cent stake and Oman Oil Company has a 2 per cent stake.

According to Mr Sinha, the cummulative commitments made on the project have crossed the Rs 7000 crore mark and the overall progress achieved by the end of August 2007 was 26 per cent.

Mr Sinha said the grass-root refinery project would cost about Rs 10,380 crore, out of which Rs 6,400 crore has already been tied up with a consortium of 20 banks led by the State Bank of India. The equity component would be brought in over the next few months, which would include equity infusion by BPCL, strategic investors and the funds raised through the IPO.

The company had recently signed the product offtake agreement in respect of the production from this refinary, he added.

UNI