Mumbai: India’s Bharat Oman Refineries Ltd, an equal joint venture between state-run Bharat Petroleum Corp and Oman Oil Co, will soon file for an initial public offer to raise up to Rs25 billion rupees , three banking sources involved in the deal said.
The company plans to sell about 48% through the public offer and a pre-IPO placement, the sources told Reuters on Tuesday.
“We hope to file the draft prospectus by the end of this week or early next week,” one said.
SBI Capital Markets, Citibank and ICICI Securities are among the arrangers of the issue, sources said.
Bharat Petroleum declined comment on the deal.
Bharat Oman Refineries is building a 120,000 barrels per day (bpd) refinery at Bina in the central Indian state of Madhya Pradesh at a cost of about Rs104 billion and has tied up a debt portion of about Rs64 billion.
Last week Bharat Petroleum said its board had approved a proposal to subscribe to Bharat Oman’s IPO, with an overall stake to be limited to 48%.
The company said its investment in Bharat Oman would not exceed Rs19.96 billion.
The sources said after the IPO Oman Oil’s holding in the company would come down to less than 10%.
BPCL runs a 240,000 bpd refinery in Mumbai, India’s financial hub, and another 150,000 bpd refinery in Kochi in the southern state of Kerala. Its subsidiary Numaligarh Refinery Ltd runs a 60,000 bpd refinery in north-east India.