GSPC plans to raise $1 bn via IPO

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Gujarat State Petroleum Corporation, GSPC plans to raise up to USD 1 billion in a stock listing in 2007, its managing director said on Friday, reports The Economic Times.

Separately, a company source said GSPC expects to earn another USD 1 billion from the sale of part of its stake in a gas block off India's east coast. "We want to raise USD 1 billion through our IPO early next year," GSPC managing director Pandian told media on Friday.

A UK magazine reported on Thursday that the state-run explorer was aiming to raise up to USD 2 billion in an initial listing on the Bombay Stock Exchange early next year. "This is absolutely wrong," Pandian said.

A company source told media that GSPC also expects to raise up to USD 1 billion by selling up to 30% of a gas block in the Krishna Godavari basin.

"We are expecting at least USD 30 million per percent from interested parties and will finalise the stake sale by January," the source, who did not want to be identified, said.

Pandian declined to comment on the value of the stake, saying any talk of it was speculative.

GSPC, a mid-sized explorer, has shortlisted Chevron Corp, BP Plc, Britain's BG Group and Italy's ENI as potential buyers of the stake.

The explorer owns 80% of the block, which is expected to hold reserves of about 20 trillion cubic feet of gas. Canada's Geoglobal Resources Inc and India's Jubilant Enpro are other stakeholders.

Pandian also said the explorer may have found more gas in a recently drilled well in the block, and testing was in process.

"Testing will take at least six to eight weeks and we are in no hurry, there are some good indications," he said.