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GSPC's IPO plan still on track, says MD

However, the company may not launch the IPO immediately but by the end of the next fiscal

Kalpesh Damor & Rutam Vora  |  Ahmedabad 

Even as the state-owned oil and gas major, Gujarat State Petroleum Corporation (GSPC) has raised Rs 3,000 crore through debt markets recently, the company has kept its options open for the initial public offering (IPO). In fact, the company officials believe that Rs 3,000-crore bonds issue would actually help the state PSU to successfully raise additional funds from its IPO likely next year.

"Our plans for IPO are still on. This bonds issue will further help us in successfully raising additional funds through primary markets. Listing of our bonds on NSE shows that our corporate governance is streamlined," Tapan Ray, managing director, GSPC told Business Standard. "We may not launch the IPO immediately but by the end of the next fiscal, we may come up with a public offering," said Ray.

GSPC on Tuesday announced raising of Rs 3,000 crore through bond issue with maturity period of 8 year, 10 years and 60 years. The bond issue was launched about 10 days back for the domestic institutional investors and was oversubscribed with total bids worth Rs 10,100 crore.

According to Ray, of the total Rs 3,000 crore raised, Rs 1,000 crore is raised through perpetual bonds (quasi equity), while the remaining Rs 2,000 crore is from non-convertible debentures.

"We are among the first to offer perpetual bonds in India with a maturity period of 60 years. These perpetual bonds have slightly higher interest rates. Till date only Tata Group of (Tata Power and Tata Steel) have been able to raise funds through perpetual or 60 year term bonds,” said Ray.

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First Published: Wed, September 26 2012. 16:10 IST