Haldia Petrochemicals revives plans for IPO

27-Nov-06

Haldia Petrochemicals has revived initial public offering (IPO) plan, which the company had initiated two years ago in December 2004, when it almost finalised its plan to raise around Rs 5-6 billion through its maiden entry into the capital market. HPL had also started shortlisting the merchant bankers for the IPO, when the clash between the two founding partners, The Chatterjee Group and the West Bengal government, broke out. About 8 months ago, the company law board (CLB) had suggested that the West Bengal exit the venture as a feasible option. The difference is that while the earlier plan for the IPO was considered necessary for equity infusion by the corporate debt restructure cell, the need for an IPO this time is to fund an expansion-cum-diversification plan. Although current project to expand by 25% is being met through internal accruals, the company needs to go for an IPO when it plans capacity expansion in a major way, within a year. Two months ago, the board took a decision to carry out a detailed feasibility study to decide to what extent the company could expand.