Bharat Oman Refineries files DRHP with SEBI; plans to raise Rs 2400 crore

Bharat Oman Refineries Limited (BORL), an equal joint venture between state-owned Bharat Petroleum Corporation (BPCL) and Oman Oil Company (OMCL), plans to raise Rs 2,400 crore through an initial public offer and other placements.

The company has filed the draft red herring prospectus with SEBI for the proposed IPO on Friday.

The company plans to sell a total of about 48% through the public offer and a pre-IPO placement to raise up to Rs 2400 crore.

The present issued and paid-up equity share capital of BORL is Rs 151 crore, which primarily comprises equity shares held by, inter-alia, BPCL and Oman Oil Company S.A.O.C.

Post the IPO, Oman Oil’s stake in the company is likely to reduce to 5 per cent.

The company is raising funds for its Rs 10,400-crore six-million-tonne petroleum refinery at Bina in Madhya Pradesh.

As on February 15, 2008, nearly 49.50% of the project was completed.  The refinery project is intended to be funded with a mix of debt and equity in the ratio of 1.6:1.

The rest amount will be funded through loans of 64 billion rupees.

The project also includes a crude oil import and storage system in Vadinar in Gujarat, and a single-point mooring facility. The refinery is expected to commence commercial operations by January 2010.

SBI Capital Markets, Citibank and ICICI Securities are among the lead managers to the Bharat Oman Refineries issue.

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