Reliance Petroleum to issue shares at Rs 60

Reliance Petroleum Ltd has informed BSE that the Company, promoted by Reliance Industries Ltd and Chevron India Holdings Pte. Ltd, Singapore has concluded the Initial Public Offering of its equity shares through a 100 % book building process after an overwhelming response and has finalised the issue price at Rs 60 per equity share.

The Company had entered the capital markets with an Initial Public Offering of 135 crore equity shares with a face value of Rs 10 each for cash to be offered in a price band of Rs 57 - Rs 62 per share. Of this, 90 crore equity shares were reserved as promoter´s contribution and the balance 45 crore equity shares will be issued to the public. The issue books were kept open for subscription / bids between April 13 and April 20, 2006.

The book building was conducted on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange (NSE).

The proceeds from the Initial Public Offering will be used to partly finance the Company´s export oriented refinery being set up at an estimated cost of Rs 2,70,000 million. The new refinery, which will have a capacity of 580,000 barrels per stream day and a 900,000 tonne per annum polypropylene plant, is being set up at Jamnagar, Gujarat. The new refinery is expected to go on stream by December 2008.

Source : Equity Bulls

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