On 7 March 2006, Reliance Petroleum filed its draft prospectus with Securities & Exchanges Board of India for its imminent initial public offering of equity shares.

RPL hopes to raise around Rs.6,000 crore from the public issue, proceeds of which would be used to part-finance the company's upcoming 27 million tpa greenfield petroleum refinery and a 0.9 million tpa polypropylene plant at Jamnagar in Gujarat. The project that is under active implementation is scheduled for commissioning by December 2008.

The total project cost of Rs.27,000 crore will be financed through equity of Rs.11,250 crore and debt of Rs.15,750 crore, implying a debt-equity ratio of 60:40.

Out of the total equity component, around Rs.6,000 crore will be raised through the public issue. The debt component of Rs.15,750 crore would comprise Rs.6,750 crore recently raised through an international loan, Rs.6,750 crore to be mobilized through export credit  agencies and Rs.2,250 crore of further debt financing of which details are being worked out.

Post issue, the holding of Reliance Industries in Reliance Petroleum would stand at 80 per cent.

Also See:

Reliance raises $1.5 billion for Jamnagar refinery project (16-Feb-06)

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