Reliance Ipcl Offer Gets 76% Oversubscription

Reliance has received an overwhelming response to its open offer for acquiring additional 20 per cent equity in Indian Petrochemicals Corporation (IPCL) at Rs 231 per share, oversubscribed by 76 per cent.

As against the response of 8.74 crore tendered shares, Reliance will accept 57 per cent of shares. The 8.74 crore tendered shares also represent 88 per cent of a total of 9.94 crore shares, which were tenderable under this offer.

Reliance had made an open offer for accepting 4.96 crore shares, representing 20 per cent of IPCL's total paid-up capital. The offer opened on July 24 and closed on August 22.

 

On completion of this open offer, Reliance's equity stake in IPCL will increase to 46 per cent. As against Reliance's offer price of Rs 231 per share, IPCL stock today closed at Rs 108.75 per share on he Bombay Stock Exchange (BSE) after touching a high of Rs 112 per share.

Foreign institutional investors (FIIs) and public financial institutions tendered 2.04 crore and 3.54 crore shares, respectively. In its media release, Reliance group said: "It appears that FIIs have acquired from public/ bodies corporate and have tendered more shares against their holding as on May 31," which stood at 1.41 crore shares.

Reliance Group through a special purpose vehicle, Reliance Petroinvestment earlier acquired 26 per cent stake in IPCL through the strategic disinvestment of government's stake.

Reliance will invest Rs 1,147 crore for acquiring this additional 20 per cent of IPCL equity through this open offer. Reliance's total investment for the IPCL acquisition will be Rs 2,638 crore, including Rs 1,491 crore paid to the government for 26 per cent equity.