Reliance Petroleum, a newly-formed company of the Reliance (Mukesh Ambani) group, has reportedly raised Rs.2,700 crore through a private placement of equity shares. Proceeds would be used to part-finance the Rs.25,000 crore 27 million tpa export-oriented petroleum refinery project at Jamnagar. The company, it may be mentioned, is soon planning to float its initial public offering of equity shares.

It is also reported that Mukesh Ambani, Chairman of Reliance Industries, will invest Rs.450 crore in the project in his personal capacity. This will result in a post-IPO holding of 1.67 per cent.

In the IPO, Reliance Petroleum would be offering 90 crore shares at a price of Rs.60 each to the public. An identical number of shares will be offered to Reliance Industries. The IPO hopes to garner Rs.4,900 crore to Rs.5,800 crore.  The post-issue equity capital of RPL will stand at Rs.4,500 crore.

RPL in February 2006 raised Rs.6,750 crore ($1.5 billion) through a syndicated loan. Another $1-$1.5 billion would be raised through an export credit.

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Dow Global to partner RPL's polypropylene plant (10-Mar-06)

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