GSPC plans to launch IPO â€کbefore June

Vol 10, PW 22 (08 Mar 07) News in Brief

Gujarat State Petroleum is getting ready to list itself on the domestic stock exchanges through an Initial Public Offering.

Indications are that the IPO will be launched, “before June (2007).â€‌ UBS Securities, Citi Group, HSBC and Morgan Stanley have been appointed merchant bankers.

An industry source tells us GSPC expects to collect about $1bn from the market. “This figure could vary between 8% and 10%.

â€‌ The division of shares in the IPO to various categories of investors “will be according to (stock market regulator) SEBI guidelines.â€‌ Money raised through the IPO will be used to finance the development of GSPC’s block in the KG basin, the Tarapur and Ahmedabad onland blocks in Gujarat, as well as new blocks in Egypt and Yemen.

Development of the Deen Dayal discovery on the KG block will absorb the most money. One analyst tells us the IPO will not attract the expected investor response until an independent third party consultant certifies the Deen Dayal reserves.