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| GSPC IPO set to hit the capital market by may |
| BS Reporter / Ahmedabad Mar 12, 2010, 00:36 IST |
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Gujarat State Petroleum Corporation (GSPC), the flagship company of GSPC Group involved in exploration and production (E&P), has put its public offer plans on a fast track and is aiming to hit the capital markets by May.
The state government is planning to dilute about 10-15 per cent in a bid to raise about Rs 3,000-3,500 crore, said government sources close to the development.
GSPC was among India’s first companies to participate in the NELP bidding process and acquire exploration blocks across the country. The company has an international portfolio with exploration acreage in Egypt, Yemen and Australia.
Inspired by GSPC’s success, the Andhra government is also in the process of setting up an oil and gas exploration and production corporation on similar lines with ONGC as an equity partner.
“We will soon come up with an initial public offer (IPO) for GSPC,” said Saurabh Patel, minister of state for energy and petrochemicals. Patel made the announcement while talking about the budgetary demand of the energy department. The Minister said the process regarding the IPO was underway.
The company has finalised five merchant bankers including DSP Merrill Lynch, JM Financial, Kotak group, SBI Capital and Citibank to do all the necessary work with regard to IPO.
GSPC has made a preferential allotment of 5 per cent of GSPC at about Rs 810 a share to banks and financial institutions, including State Bank of India and IDBI Bank.
“GSPC aims to submit the draft red herring prospects to SEBI early next week. The IPO is expected to hit the capital market some time before May 15,” sources said.
GSPC had originally planned a Rs 7,000-crore IPO about three years back, that was later reduced to Rs 5,000 crore. In 2008, the company’s attempt to come up with a Rs 3,500-crore IPO failed following a sharp decline in benchmark prices. Subsequently, the company’s valuation also took a hit due to a state government requirement for profit making PSUs to part with 30 per cent of its profit before tax for social causes.
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