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Reliance says IPCL open offer oversubscribed

The Reliance group on Wednesday said that its open offer for acquiring a 20 per cent stake from public shareholders of Indian Petrochemicals Corporation Ltd, which closed last week, was oversubscribed 1.76 times.

India's biggest petrochemicals maker Reliance Industries is the flagship company of the group.

Reliance had bought a 26 per cent stake in IPCL from the government in May at Rs 231 per share, totalling Rs 1491 crore (Rs 14.91 billion).

That purchase triggered the open offer clause in the Indian takeover code which requires acquirers of a 15 per cent or more in a company to buy a further 20 per cent from public shareholders.

Reliance said it received 8.74 crore (87.4 million) shares in response to its offer to buy 4.96 crore (49.6 million) shares.

It will hold 46 per cent of IPCL when the offer is completed at a total cost of Rs 2638 crore (Rs 26.38 billion), giving it a firm grip on India's petrochemicals market which it already dominates through Reliance Industries.

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