Reliance Industries Limited kicked off nationwide marketing of its public issue from Gujarat today.
Announcing issue at Ahmedabad Nikhil Meswani, ED, RIL said Gujarat has always helped the RIL group grow and so the management has decided to announce formal launch of IPO from Gujarat.
Meswani said company has come up with IPO almost after 29 years as the last IPO of Reliance group had hit the market way back in 1977.
Gujarat, which has investors who have been investing in Reliance group since generations, is an ideal place for the company to launch marketing of its public issue.
The issue will hit the market on 13 April and close on April 20. RIL has fixed price band of Rs 57 to Rs 62 for the issue of 135 crore shares of Rs 10 each.
The issue is being made to part finance the Rs 27,000 crore export oriented refinery being set up by the company in Jamnagar next to its existing refinery project. The SEZ refinery would focuses more on supplying Euro IV grade diesel and gasoline to the EU countries and also to the US market, said Meswani.
Meswani said the US market will face tremendous shortage of fuel as no new refineries have come up in US and most part of the Europe in last couple of years.
The existing refinery he said would continue with its production for the domestic Indian market where again the demand for higher environmental standards is increasing rapidly. The SEZ refinery will have the capacity of 30 million tonne and will go on stream by the end of 2008.
He said, the capital cost of the project would be nearly 40 per cent lower than the other projects of similar size worldwide. The new refinery is designed to process some of the most heavier and savour crude to earn the best refining margins.
The new refinery will earn $2 to $3 per barrel higher gross refining margins compared to Singapore refinery margins, which are considered as industry benchmark.