Reliance Petroleum prices IPO in middle of range despite colossal demand

Greenfield refinery and petrochemicals project raises $1.8 billion in first share sale from a Reliance company since the group was split.

By Anette Jönsson

April 24, 2006

Greenfield Indian refinery and petrochemicals company, Reliance Petroleum surprised the market Monday April 24 by pricing its initial public offering just above the mid-point of the indicated price range despite the fact that more than 99% of all orders were placed at the top end of the range.

That meant the single project company, which is a spin-off of IndiaÆs largest listed private sector firm Reliance Industries, raised Rs81 billion $1.8 billion from its offer which essentially comprises a construction site that will generate its first full year of earnings only in 2010. Reliance Industries operates within the same industries

Even so, the deal was also highly sought after, especially by foreign institutions who saw...

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