Reliance Petroleum Ltd has decided to leave something on the table for investors, when it decided to issue shares at Rs 60 per share.
Public issue price fixed at Rs 60.
MUMBAI: Reliance Petroleum Ltd has decided to leave something on the table for investors, when it decided to issue shares at Rs 60 per share, in spite of the issue getting oversubscribed at Rs 62 per share.
The allotment price fixed on Monday is in the middle of a price band of Rs 57 to 62 set for the initial public offering of 45 crore shares, which was oversubscribed by over 50 times.
Sources said it is likely that each RPL investor would be giving some shares. This could not be confirmed with the company, but a back-of-the-envelope calculation provides that every small investor who has applied could get 65 shares each.
Trading in the shares is expected to begin between May 5 and May 10, sources revealed.
The greenfield project promoted by Reliance Industries Ltd will eventually hold 75% of equity in RPL with Chevron India Holdings Ltd, its partner slated to own 5%, by buying RPL shares at Rs 60 per share. Chevron has a proviso to ramp up its shareholding to 29% eventually.
The allotment process has to be completed in 15 days as per the Securities and Exchange Board of India guidelines.
It would be an extensive exercise as the retail portion alone accounts for 13.5 crore shares.
There were 21.3 lakh applications for 204.6 crore shares, whereas the reserved quota for small investors is pegged at 13.5 crore shares.
"The Reliance group wants small investors to make some money," says S Subramaniam of Enam Financial Consultants- a part of 9-member team of merchant bankers who peddled the 45 crore offering in the primary markets. He was referring to the decision to peg the offer price at Rs 60 instead of Rs 62 per share.
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