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RPL IPO oversubscribed 5 times

On completion of RPL, Jamnagar would be the largest refining hub in the world.

india Updated: Apr 13, 2006 15:33 IST

The initial public offer (IPO) of Reliance Petroleum Limited (RPL), which opened for subscription from Thursday, has been oversubscribed five times.

RPL, which is setting up an export-oriented refinery near its existing one at Jamnagar in Gujarat, is hitting the capital market to part finance the expansion programme which was being set up at a cost Rs 27,000 crore.

Reliance Industries Executive director Nikhil Meswani told reporters on Thursday that on completion of RPL, Jamnagar would be the largest refining hub in the world.

He said that although the price band of the issue had been fixed between Rs 57 to Rs 62, investors would have to pay Rs 16 as application money, Meswani added.

He said that Chevron has picked up five per cent stake in RPL, adding that the US oil major would have the option to increase the stakeholding up to 29 per cent.

He said that RPL would sell petroleum products to the markets of US and Europe as these countries faced refining capacity shortage.