The Hindu Business Line : GSPC may go for 5% private placement to raise Rs 1,000 cr

Fund needs
The Gujarat Government controlled integrated energy company has indicated its plan to raise a total of $1- $1.5 billion (about Rs 5,000-7,500 crore) through private placement and IPO.

Pratim Ranjan Bose

Kolkata, Nov. 11 Having received the formal approval for its KG basin gas field development plan from the Ministry of Petroleum and Natural Gas on November 8, the Gujarat State Petroleum Corporation may soon go ahead for fresh issue of five per cent shares for private placement to Gujarat PSUs, banks and FIs, according to sources.

Sources say that the company expects to raise about Rs 1,000 crore through the private placement to meet the immediate fund requirements for $1.7 billion (about Rs 8,500 crore). The bulk of the fund requirement for the project, however, may be met through a proposed 10 per cent fresh issue of shares for the initial public offer (IPO) by the end of this fiscal.

“The State Government has given an in-principle approval for private placement of shares. Accordingly, the company has tied up plans to place shares with a number of state PSUs and public finance institutions. With the availability of a formal go-ahead towards project development, GSPC may now enter the fund-raising phase within the next few weeks,” a source close to the development told Business Line.

The Gujarat Government controlled integrated energy company has indicated its plan to raise $1-1.5 billion (Rs 5,000-7,500 crore) through private placement and IPO. GSPC aims to produce 5.7-8.6 million standard cubic metres of natural gas a day (mscmd) from 15 production wells in the western part of the Deendayal field.

The formal approval will enable the company to kickstart the tendering process of EPC contracts for project development. “The tender document for EPC contracts for well head platforms, offshore and onshore processing facilities, is ready. GSPC may complete the entire process of inviting tenders and award of contracts in next 3-4 months,” the source said.

Change of guard

Meanwhile, there is a change of guard at GSPC. Followed by a bureaucratic reshuffle, Mr Tapan Ray, formerly Principal Secretary (Economic Affairs) has replaced Mr D.J. Pandian as the Managing Director of the company. Mr. Pandian, who was the heading the company, has been posted as Principal Secretary (Energy and Petrochemicals), Gujarat.

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