The Hindu Business Line : Bharat Oman Refineries public offer likely in July quarter

Mumbai, March 28 The long-awaited Bharat Oman Refineries Ltd’s (BORL) initial public offering is likely to hit the market in the second quarter of the coming fiscal.

BORL would be raising Rs 2,400 crore, 50 per cent of which would be raised through a pre-IPO placement, said a senior company official.

The company filed its DRHP with SEBI on Friday.

The public subscription and the private placement are likely to constitute about 48 per cent of the BORL equity.

Post the IPO, Oman Oil’s stake in the company is likely to reduce to 5 per cent. BORL is a 50:50 joint venture company of Bharat Petroleum Corporation Ltd and Oman Oil Company Ltd.

The company is raising funds for its Rs 10,400-crore six-million-tonne petroleum refinery at Bina in Madhya Pradesh.

The refinery is expected to start commercial operations by January 2010.

The refinery project has debt and equity in the ratio of 1.6:1 and the debt component of Rs 6,400 crore, has already been tied up. BORL intends to raise approximately Rs 3,850 crore in equity for the project.

The project also includes a crude oil import and storage system in Vadinar in Gujarat, and a single-point mooring facility, which can receive crude oil shipments from very large crude carriers.

The terminal will be connected to the refinery through an approximately 935-km-long crude oil supply pipeline.

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