Gujarat State Petroleum Corporation (GSPC) has decided to come out with a Rs 4,000-6,000 crore IPO before Diwali. According to sources, the company has also short-listed a few merchant bankers including SBI Caps and JM Financial for managing the issue.
The GSPC Group flagship was planning to hit the capital market by mid-2008. The plan was, however, deferred in view of the recent market uncertainties. According to sources, financial institutions had advised the Gujarat State E&P company to review the market condition during mid-2008 and decide accordingly. The IPO proposal received an informal go-ahead from the Narendra Modi Government in February. A formal decision in this regard was expected shortly.
The public offer may part-finance the proposed development of GSPC�s Deendayal gas field (KG-OSN-2001/3) in KG Basin.
While the commerciality of the field and the proposed development is yet to be approved by the Directorate General of Hydrocarbons, the company expects the development to cost approximately $ 700 million (Rs 2,800 crore) in phase-I. The company previously claimed to have tested success in appraisal drilling for the development of KG-8 gas discovery during September-October 2007.
Confirming the IPO plans, a GSPC official told Business Line: �We are extremely hopeful that the management committee would declare the commerciality of the find shortly. In the meantime, we have started working on the field-development plan so that we may submit the same as soon as the commerciality is approved.�
Initial Estimates
On whether the company would also rope in strategic investor in the company through IPO, the official said that such options were not considered as yet. On the size of the IPO and other details, he said that while such decisions would be taken in due course of time, initial estimates suggested that the company may raise Rs 4,000-6,000 crore.
GSPC is the holding company of fully integrated GSPC Group, having presence in almost all the energy sectors including E&P, pipeline, city gas distribution, power and others. Gujarat State Petroleum Ltd � a listed company and the group�s midstream subsidiary � manages and owns the largest gas pipeline network in Gujarat. GSPC Gas is in city gas distribution business, reports The Hindu Business Line.
Source: Moneycontrol.com
Sunday, March 30, 2008
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