HSBC values Rel Petro at Rs 83 per share

Mumbai, Mar 8 (UNI) Reliance Petroleum Limited (RPL), a unit of Reliance Industries, which is planning to sell 1.8 billion shares in an initial public offering (IPO) to raise up to USD 1.3 billion has been valued up to USD 8.5 billion or Rs 83 per share by global banking major HSBC.

Terming RPL's 5,80,000 barrels per day (29 million tonne per annum) refinery at Jamnagar in Gujarat as ''a well-planned and designed project,'' HSBC, in its recent global research report, said: ''Our fair value range for RPL is USD 6.8-8.5 billion on a relative PE basis. On a discounted cash flow basis, the fair value range is between USD 6.1 billion and USD 8.1 billion.'' HSBC has forecast a net profit of Rs 5,000 crore for RPL in 2009-10, the first full year of operations, driven by refining margins of over USD 10 per barrel and 95 per cent capacity utilisation, the report said.

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