Wednesday, April 12, 2006

Reliance petroleum

Period :13 to 20 April 2006
Price:-57-62
Face value -10
The company is entering the capital market with 135 crore shares of 10 Rs each.Reliance industries will subscribe for this IPO for 90 crores at the IPO price.The net susbscription available for the public will be 45 crores approximately.Retail investors have to pay only They can apply for minimum of 100 and maximum of 1600 shares.The IPO money will be used for export oriented refinery at Jamnagar in Gujarat,and for setting up of 900,000 tone per annum polypropelene plant .
Expert Opinion-Subscribe the iPO
With limited additions expected to global refining capacity and an increase in demand for petroleum products forecast for key markets, any current excess of refining capacity is expected to decline further, resulting in greater utilisation of the present refinery capacities.
The introduction of stringent norms and product specifications is expected to result in fewer refineries being able to meet rising demand for such products, particularly since most US and European refineries are thirty years old.
This has provided an opportunity to RPL to capitalise on the imbalance between capacity and demand by rapidly establishing an export-oriented, technologically advanced refinery to harvest a greater share of the rising demand. Further, by commissioning its refinery as early as December 2008, RPL would have a head start of at least two years over other refining giants planning similar greenfield refineries or capacity expansions.

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