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Reliance Petroleum raises Rs 2700 cr via pre-IPO placement

Written by: Staff

MUMBAI, Apr 3 (UNI) Reliance Petroleum, a wholly-owned subsidiary of Mukesh Ambani-controlled Reliance Industries, has raised Rs 2,700 crore through a pre-IPO placement of 45 crore equity shares today.

This is a part of fund-raising programme for the Rs 27,000 crore grass roots refinery being set up by RPL in a Special Economic Zone at Jamnagar in Gujarat. The 100 per cent export-oriented refinery will have a capacity of 5,80,000 barrels per day, making it the sixth largest refinery in the world.

RPL is also setting up a 9 lakh tonne per annum polypropylene plant in the SEZ.

The project is likely to go on commercial production by the year 2008.

The pre-IPO (initial public offer) investors, include foreign institutional investors (FII), Indian financial institutions and banks. Earlier, RIL chairman Mukesh Ambani had invested Rs 450 crore in the pre-IPO subscription.

Mr Ambani recently toured major overseas cities inviting investors for making subscription to this mega issue at around Rs 60 per share.

The price per share for public offering would be lower than Rs 60 or the issue price in the proposed IPO which is expected to open after the completion of the road show on April 10, the company sources said.

RIL management had informed the SEBI through its Draft Red Herring Prospectus(DRHP) that the issue size of the public offering would be 135 crore equity shares, bringing the total offering to about 180 crore equity shares.

Out of 135 crore equity shares, RIL would subscribe to 90 crore equity shares at the issue price, the sources said, adding the parent company would make the payment one day before the opening of the issue at the higher end of the price band. Net issue to the public would be 45 crore equity shares.

These equity shares will be locked for one year from the date of allotment, wherever applicable, as per SEBI Guidelines.


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