Friday, October 28, 2005

Gujarat State Petronet's IPO in December

Gujarat State Petronet's, GSPL, initial public offering, IPO, of 13.8 crore equity shares will hit the market in December, report agencies.
The company has filed the draft red herring prospectus for the IPO of 25.45% of the post-issue equity with the Securities and Exchange Board of India.
GSPL, the pipeline subsidiary of Gujarat State Petroleum Corp, GSPC, plans to use the proceeds of the IPO for funding its proposed Rs 1,450 crore (Rs 14.50 billion) expansion of its pipeline network in Gujarat, according to the prospectus.
Kotak Mahindra, HSBC Securities and Capital Markets and ICICI Securities are the book running lead managers of the issue being done by the book-building route.
Half of the IPO has been reserved for qualified institutional buyers, QIBs, while retail investors will get 35% of the 13.8 crore shares. The remaining 15% would be for non-institutional buyers. Of the reservation for QIBs, 5% has been set-aside for Mutual Funds.
Post-issue, GSPC's equity in the company would come down to 39.15% from current 52.52%. India Development Fund will hold 13.28%, IDFC 2.77%, IDBI 4.15% and UTI Bank would hold 2.31% in the enhanced equity base of the GSPL.
GSPL, in its prospectus, stated that of the Rs 1,450 crore (Rs 14.50 billion) required to build 742-km of new pipeline network by July 2007, promoters are bringing in Rs 105.36 crore (Rs 1.05 billion) - GSPC Rs 5 crore (Rs 50 million), IDBI, Rs 4.5 crore (Rs 45 million), IDFC Rs 30 crore (Rs 300 million) and UTI Bank Rs 25 crore (Rs 250 million). It will raise Rs 875.715 crore (Rs 8.75 billion) as debt and another Rs 105.635 crore (Rs 1.05 billion) would be from internal accruals.


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