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Refinery JV: BPCL puts public issue plan on hold

Refinery JV: BPCL puts public issue plan on hold
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First Published: Wed, Mar 04 2009. 12 03 AM IST
Updated: Wed, Mar 04 2009. 12 03 AM IST
New Delhi: India’s second largest state-run refiner, Bharat Petroleum Corp. Ltd (BPCL), has delayed plans for a unit to raise money from the public because of the current volatile market conditions, the company said on Tuesday.
Bharat Oman Refineries Ltd, a joint venture (JV) between BPCL and Oman Oil Co., is in discussions with private equity investors to raise money for the Rs10,400 crore refinery it is building in Madhya Pradesh, the company said in an emailed statement. The 6-million-tonne-a-year refinery is likely to start commercial operations around January, according to the statement.
“Suitable investments will be sought from these investors at a time that is beneficial for the project,” the refiner said in the statement. “Until then the funding would be arranged by Bharat Petroleum.”
A group of lenders has agreed to provide Rs6,400 crore to the company for the refinery, according to the statement. The company may consider raising money from the public in the future when the market improves, according to the statement.
The Indian share market lost more than half its value in 2008 and this year so far it has dropped 12.7%, as global economic concerns have forced investors to flee equity markets.
Reuters contributed to this story.
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First Published: Wed, Mar 04 2009. 12 03 AM IST