Reliance Petroleum fixes issue price at Rs60 per share

25 Apr 2006

Reliance Petroleum (RPL) has fixed the issue price for its recently concluded IPO at Rs60 per equity share, lower than the upper end of the price band at Rs62 per share. The company said it has fixed a lower issue price as an investor-friendly measure.

The IPO had attracted an unprecedented response from both domestic and overseas investors. The issue was subscribed more than 52 times and the total value of bids received was over Rs140,000 crore, making it the most successful Indian issue ever. In comparison, the total value of bids for the ONGC IPO was under Rs73,000 crore.

Overseas investors committed a total of $25 billion in total bid value, reportedly the highest ever even globally for an IPO in terms of bid value. Foreign funds and institutional investors committed $15 billion while the balance $10 billion came from hedge funds.

The company is setting up a 580,000-barrels per day (27-million barrels per annum) oil refinery in Jamnagar, Gujarat at a total cost of Rs27,000 crore.

US oil major Chevron had picked up a 5-per cent stake in the company at Rs60 per share and has an option to raise its stake to 29 per cent at a future date. Subsequent to the stake acquisition, Chevron has become a co-promoter of RPL.