GSPC IPO Set To Hit The Capital Market By May (12-Mar-2010)
Gujarat State Petroleum Corporation (GSPC) is all set to put its Initial Public Offer (IPO) in capital markets by next financial year in May 2010.
The state government is planning to divest about 10-15 % in the company, to raise about Rs. 3,000-3,500 crore.
The government of Andhra Pradesh is also in the process of setting up an oil and gas exploration and production corporation on similar lines with ONGC as an equity partner.
Mr. Saurabh Patel, Minister of State for Energy and Petrochemicals said the process regarding the IPO in progress and would soon come up with an IPO for GSPC.
The company has finalised 5 merchant bankers including - DSP Merrill Lynch, JM Financial, Kotak group, SBI Capital and Citibank to do all the necessary work with regard to IPO.
GSPC has made a preferential allotment of 5 % of GSPC at about Rs. 810 per share to banks and financial institutions, including State Bank of India (SBI) and IDBI Bank.
According to the sources, GSPC eyes to submit the draft red herring prospects to SEBI early next week. Earlier, about 3 years ago, GSPC had planned a Rs. 7,000 crore IPO that was later reduced to Rs. 5,000 crore. In 2008, the company's attempt to come up with Rs. 3,500 crore IPO but failed to raise, as the economic condition of the country was not favouring.
Consequently, the company's valuation also took a hit due to a state government requirement for profit making PSUs to part with 30 % of its Profit Before Tax (PBT) for social causes.
GSPC was among India's first companies to participate in the NELP bidding process and acquire exploration blocks across the country. The company has an international portfolio with exploration acreage in Egypt, Yemen and Australia.
GSPC has grown from a small oil and gas producing company in Gujarat into a vertically integrated energy company across India and overseas within just a decade. GSPC is rapidly developing a multi-dimensional operational framework that fulfils India's energy needs by exploring, developing and harnessing newer energy sources. It is leading through action towards a hydrocarbon economy in India with sustainable environmental activities, with the vision of becoming 'the Complete Energy Company'.
Incorporated in 1979 as a petrochemical company, GSPC has today metamorphosed into a large-scale Rs. 3900 crore energy organization, excelling in a wide gamut of hydrocarbon activities. With the Government of India's decision to privatize the hydrocarbon sector, GSPC acquired several discovered fields in the first and second rounds of bidding process initiated by the Government of India during 1994 and 1995.
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