It is official now. The state-owned blue chip company Gujarat State Petroleum Corporation (GSPC) proposes to raise Rs 3,067 crore from the initial public offering (IPO).
The company has decided to offer 44.80 crore equity shares, or 16.70 % of its total equity of Re 1 each, through the IPO. This will be the largest offering by any state-owned entity so far, say sources.
As per the draft red herring prospectus filed by the company, the valuation per share stands at Rs 68.45. As on date, the company has 223.4 crore equity shares which will be increased to 268.3 crore post issue. The total valuation of GSPC stands at Rs 18,360 crore, as per these figures.
GSPC board has a mandate from Gujarat government to dilute 20% equity shares. The state PSU has already offloaded 5% equity shares through private placement earlier this year.
The company has ambitious expansion plans of investing Rs 8,000 crore, key to making Gujarat the gas capital of India.
Of the money raised, GSPC will utilise Rs 1,280 crore for developing the Deen Dayal West field in the Krishna Godavari basin. Another Rs 1,220 crore will be utilised towards pre-payment of loans and the remaining Rs 566 crore for exploration and development work in year 2011.
GSPC IPO values Re 1 share at Rs 68
Posted on Saturday, March 27, 2010
by Ahmedabad
