Tuesday, September 23, 2008

Bharat Oman Refineries to go ahead with IPO plans

Bharat Oman Refineries Ltd, a joint venture between Bharat Petroleum Corporation and Oman Oil Company Ltd, is all set to go ahead with its proposed IPO plan, a top company official said here.

BORL is implementing a 6-million tonnes per annum (mtpa) greenfield refinery at Bina, Madhya Pradesh.

"The company is preparing for its IPO, but it's not immediate. We are yet to get our final clearance from the Securities and Exchange Board of India (SEBI). We are meeting some queries from SEBI," Bharat Petroleum Chairman and Managing Director Ashok Sinha told reporters here.

"We are not in a hurry to float our IPO. We will take it as and when we feel comfortable," Sinha said.

BPCL's Bina refinery will be commissioned by December 2009 and will help the company meet its requirements in central and northern India, he said.

BORL has spent Rs 9,275 crore for the Bina project and has completed 75 per cent of the construction. The estimated capital outlay for the project is Rs 10,378 crore.

The project is proposed to be financed in a debt/equity mix of 1.6:1.

Both BPCL and Oman Oil Company Limited (OOCL) have contributed Rs 75.5-crore each towards the equity share capital of the company.

With OOCL having decided to limit its equity contribution to the present level of Rs 75.50 crore, BPCL has, with the approval of the government, decided to enhance its equity contribution in BORL up to 50 per cent, amounting to Rs 1,996-crore.
 
Via Economic Times

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