Reliance Petroleum, RPL, is entering the capital market on April 13 with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium to be decided through 100% book building route.
The issue will close on Thursday, April 20, 2006.
The price band has been set at Rs 57 to Rs 62 for the issue.
Reliance Industries, RIL will subscribe to 90 crore shares at the issue price in the proposed IPO. For this purpose, RIL would be making a payment towards these 90 crore equity shares one day prior to the opening of the issue at Rs 62 per share amounting to Rs 5,580 crore (Rs 55.80 billion).
The net size of the initial public offer, IPO available to the public is 45 crore shares.
Retail investors will have the option of pay only Rs 16 per share on application. Retail investors can apply for a minimum 100 shares and a maximum of 1600 shares.
The issue is being made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, SEZ, at Jamnagar, Gujarat. The export-oriented refinery will have a capacity to process 5,80,000 barrels per day making it the sixth largest refinery in the world. As a part of this project, RPL is also setting up a 900,000 tonne per annum polypropylene plant.
The project is likely to go on stream by December 2008.
A quick look at Reliance Petroleum IPO:
Issue opens on April 13, closes on April 20
Equity: Rs 4,500 crore
Price band: Rs 57-62 per share
Issue size: Rs 2,565-2,790 crore
Market cap at issue price: Rs 25,650-27,900 crore
Enterprise value at Rs 62: Rs 43,650 crore
Shares on offer: 45 crore
QIBs: 60% or 27 crore shares
NII: 10% or 4.5 crore shares
Retail: 30% or 13.5 crore shares
Holdings of shares
Reliance Industries, RIL will subscribe to 90 crore shares at issue price decided at end of IPO
RPL recently issued 45 crore shares to FIIs, FIs and banks
RIL to hold 80%
Use of IPO proceeds
Build 23 mtpa or 580,000 bpd refinery
9,00,000 tpa polypropylene
Project cost: USD 6 billion
USD 3.5 billion (Rs 15,750 crore) via debt
USD 2.5 billion (Rs 11,250 crore) via equity
Already raised Rs 7,200 crore equity (incl private placement of Rs 4,500 crore)
Already raised USD 1.5 billion debt via syndicated loan and USD 1 billion via export credit