GSPC files DRHP with Sebi to bring out its IPO

State-run Gujarat State Petroleum Corporation (GSPC) has filed much awaited Draft Red Herring Prospectus (DRHP) with the regulatory body Sebi to bring out its Initial Public Offering (IPO).

The Gujarat government owned company which is into exploration and trading of petroleum products will raise Rs 3,050 crore from the market and will issue 48.5 crore new equity shares having face value of Re one per share, sources in the GSPC said.

The company will use IPO proceeds to funds its existing projects and repay the loans. Around Rs 1,200 crore will be used to fund the project of Deen Dayal Block in KG basin, they said.

The Director General of Hydrocarbon (DGH) has certified two TCF (trillion cubic feet) gas reserves in GSPC's Deendayal blocks in the KG basin.

Presently, exploration is underway in GSPC operated block KG-OSN 2001/3 located in Deendayal West field and so far 16 wells have been drilled in the area.

According to the state government, commercial production of oil and gas from the field is scheduled to begin from 2012-13.