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Reliance Petro plans overseas listing

The Reliance group, India's largest conglomerate, said on Friday it is planning a global listing for Reliance Petroleum Ltd, through a partial stake sale by founder company Reliance Industries Ltd and other shareholders.

Bombay-based Reliance Petroleum said it will sponsor an issue of Global depository receipts against existing local shares.

This will be done by the sale of a 13 per cent stake by Reliance Industries, which now holds 64 per cent of RPL.

Other RPL shareholders have also been allowed to participate in the offer.

Analysts said the move will boost the profile of Reliance Petroleum, India's largest private sector company and the biggest private sector refiner.

It will generate a cash bonanza for RIL as analysts have valued its 13 per cent stake at Rs 35 billion or $750 million.

These GDRs will be listed on the Luxembourg Stock Exchange, a company spokesman said.

Shareholders have been given two options on pricing.

They can either indicate the price at which they would like to sell their holding, or they can opt for the cut-off price to be set by the lead managers.

The size of the offer and the price will be determined later. Reliance Petroleum shares fell 0.20 per cent to close at Rs 53.00, while the Sensex closed down 0.40 per cent.

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