Reliance Petro IPO oversubscribed eight times

Mumbai, Apr 13 (UNI) Reliance Petroleum's IPO of 45 crore shares was oversubscribed by over 8 times as the company received bids for 365 crore shares at the close of business hours today.

The issue was oversubscribed 2.6 times within five minutes of its opening today with the bidding of 82 crore shares at Bombay Stock Exchange and 35 crore at National Stock Exchange, merchant banking sources said, adding majority of shares were bid at Rs 62 each as against the price band of Rs 57-62 fixed by RPL, a subsidiary of Mukesh Ambani-controlled Reliance Industries (RIL).

Of the 365 crore shares bid worth Rs 28,000 crore received by the issue managers, the qualified Instutional buyers (QIBs) subscribed 11.7 times, high networth individuals (HNIs) 8.6 times, while final bids by retailers were yet to be counted, the sources added.

RIL shares fired up on the bourses today with prices touching the peak of Rs 852.40 on the back of the RPL huge oversubscription coupled with purchase of five per cent equity worth Rs 1,320 crore by US energy major Chevron, which has the right to up its stake to 29 per cent in Reliance Petroleum at a later date. RIL share closed at Rs 847.05, gaining Rs 18.50 paise from the previous close, an increase of 2.23 per cent.

The RPL shares are expected to be listed on the stock exchanges between May 5-10.

Reliance Petroleum' IPO is to partly fund the company's Rs 27,000-crore export-oriented refinery coming up near its existing refinery at Jamnagar in Gujarat.

Slated for completion in 2008, the site of twin-refineries would become the largest refining hub in the world. RPL would sell petroleum products in the US and European markets.

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