Published on Thu, Dec 18, 2008 at 12:49 | Source : NW18
Updated at Thu, Dec 18, 2008 at 14:20
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GPSC defers IPO plan
Gujarat State Petroleum Corp. Ltd. has put on hold its proposed initial public offer due to choppy market conditions, and will instead raise debt to part finance the gas development plan of its deepwater Krishna-Godavari block, Managing Director D.J. Pandian said today.
Gujarat State Petroleum Corporation (GSPC) has put on hold its proposed initial public offer due to choppy market conditions, and will instead raise debt to part finance the gas development plan of its deepwater Krishna-Godavari block, Managing Director D.J. Pandian said today.
"We are not looking at the IPO right now. It may come at a later stage, probably closer to gas production from our KG Basin block. We will now raise the money through debt to part fund our investments," Pandian said.
GSPC was planning to mop up around $1 bln through its proposed IPO, in which the Gujarat government would have divested 10-15% of its holding in the company.
GSPC had already appointed five merchant bankers--DSP Merill Lynch, JM Financial, Citibank, Kotak Mahindra Capital Co. and SBI Caps--as advisors to the proposed public offer.
Pandian said the company will invest over 50 bln rupees more in developing the gas field in KG-OSN-2001/3 block in the KG Basin.
"We have already invested 20 bln rupees in the block and will invest at least another 50 bln rupees for beginning gas production," he said, reports Newswire 18.
