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RPL equity offer likely on April 13

Written by: Staff
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Mumbai, Apr 5 (UNI) Reliance Petroleum Limited (RPL), a subsidiary of Mukesh Ambani-controlled Reliance Industries Limited (RIL) is likely to make its maiden public offering of equity on April 13 within an expected price band of Rs 57-62 per share to raise about Rs 5,000 crore as part financing of its Rs 27,000 crore greenfield refinery project at Jamnagar in Gujarat.

When contacted by UNI, the RPL spokespersons declined to disclose details. '' Nothing can be divulged at the moment as the company is awaiting clearance from market regulator SEBI. A formal announcement would be made only after getting the approval and filing the same with the Registrar of Companies (RoC),'' the officials said.

Sources, however, said, that RPL would raise Rs 2,565 crore at the lower end of the price band and Rs 2,790 crore at the upper end through 45 crore shares to be given to the public. Besides, RIL would subscribe to 90 crore shares at the issue price. This means RIL would pump in over Rs 5,500 crore in the issue.

While a total of 180 crore equity shares were to be offered, Reliance Petroleum had earlier this week raised Rs 2,700 crore through its pre-IPO placement of 45 crore shares. The placement was made to foreign institutional investors, financial institutions and banks at Rs 60 a share.

After the private placement, the size of the IPO, would stand revised to 135 crore equity shares. Of these, RIL would subscribe to 90 crore shares at the issue price. The net issue to the public would be 45 crore shares.

The private investors, who are believed to have picked up equity include Blackstone, Deutsche Bank and Citigroup.

RPL had recently concluded a syndicated loan of nearly Rs 6,750 crore. It also plans to seek additional financing through an export credit of Rs 4,500-6,750 crore to build the Jamnagar refinery.

UNI GC PP SKB1815

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