The Hindu : IPCL issue: Differential pricing for retail investors

Online edition of India's National Newspaper
Wednesday, Feb 18, 2004

Business

Business

IPCL issue: Differential pricing for retail investors

By Our Special Correspondent

MUMBAI, FEB. 17. After the successful disinvestment in Maruti through the capital market (book-building) route, the Central Government today launched its offer for sale of equity shares in Indian Petrochemicals Corporation (IPCL). The bids open on February 20 and close on February 27.

However, the Government as a selling shareholder will announce a price band for bidding, like in the case of Maruti, only on Thursday, said Arun Shourie, Disinvestment Minister, here, while addressing a press conference to launch the public offer of IPCL. This is the first of a series of such capital market offers to be followed by CMC, IBP, ONGC, GAIL and Dredging Corporation.

The Disinvestment Minister also said that the Government reserved the right, at its sole discretion, to transfer the equity shares to retail individual bidders at a `differential lower price' as compared to the price for qualified institutional buyers (QIB) and Non Institutional Bidders.

The offer is for up to 5.94 crore equity shares of Rs. 10 each. The offer constitutes 23.945 per cent of the paid-up equity capital of the company. Reliance Petroinvestments Ltd (RPiL) has the option to purchase up to 5 per cent of the company's equity share capital at the higher of the offer price and an independent valuation being carried out by AF Ferguson.

The size of the offer would be enhanced to the extent of up to 5 per cent of the paid up capital of the company (up to 1.24 crore equity shares of Rs. 10 each) in the event RPiL does not exercise this option.

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