Indian IPO

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Thursday, April 06, 2006

Retail investors will pay only Rs 16/sh for RPL IPO

Reliance Petroleum, RPL, today filed its red herring prospectus, RHP, which has been taken on record by the registrar of companies, ROC, Gujarat.

RPL proposes to enter the capital markets with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium to be decided through a book building route to be conducted on the stock exchange, Mumbai, BSE and the National Stock Exchange, as per the company announcements.

The price band has been set at Rs 57 to Rs 62 for the proposed issue.

Initially, in the draft red herring prospectus, DRHP, RPL has proposed to offer 180 crore shares.

Subsequently, RPL placed 45 crore shares through a pre-IPO placement to various investors including foreign institutional investors, FII, domestic investment institutions, insurance companies and banks.

The price per share for the pre-IPO allotment made is lower of Rs 60 or the issue price in the proposed IPO. These equity shares are locked in for the period of one year from the date of allotment of equity shares in the proposed IPO, wherever applicable, as per SEBI guidelines.

Consequently, the issue size has come down to 135 crore shares.

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 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 will open for subscription on Thursday, April 13, 2006 and will close on Thursday, April 20, 2006.

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 stream days 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.


At 9:15 PM, Blogger Narendra said...

So, if the retail investor has to pay only Rs.16 with application, when will he pay the rest of the amount?


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