Reliance Petroleum Limited (RPL), promoted by Reliance Industries (RIL) to set up the 27-million tones per annum oil refinery project, has reportedly raised Rs2,700 crore from private placement of equity shares at a premium. The company is due to come out with an IPO shortly and has already filed the draft prospectus with SEBI.
Nearly 15 investors have reportedly participated in the issue, including some of the well known foreign banks like Citigroup and Deutsche besides private equity investors like Blackstone. RIL chairman Mukesh Ambani is also rumored to have participated in the issue in his private capacity with an investment of close to Rs500 crore.
The placement has reportedly been done at Rs60 per share, including a premium of Rs50 per share.
The pre-IPO private placement would help the company to set a benchmark pricing. The presence of high profile investors would also raise the confidence in the IPO, which is expected to be priced at a hefty premium.
RPL is planning to set up an export-refinery next to the existing oil refining complex of RIL at Jamnagar. The 27-million tonnes per annum capacity refinery would be one of the most complex ever built, with the ability to switch over from processing heavy and sour crude oil to light crude, depending on prevailing the prices and availability.
The projects is estimated to cost Rs27,000 crore which would be financed through Rs15,750 crore of debt and balance Rs11,250 crore of equity. RIL has already invested Rs2,700 crore in the company and is committed to subscribe to another 90 crore equity shares during the IPO.
After the private placement, the IPO is now expected to raise around Rs6,000 to Rs6,500 crore, including the subscription by RIL.