Haldia Petrochemicals Limited (HPL) has ended the year 2004 without a fresh infusion of equity. The Chatterjee group (TCG) and Bengal government - principal promoters of HPL are to request Industrial Development Bank of India (IDBI) to extend the December 31, 2004 deadline for implementing the debt restructuring package. Another aspect that remains unclear is the delay in Indian Oil Corporation’s (IOC) entry as the much-awaited board meeting of HPL to approve IOC’s entry is yet to take place. IOC’s board has already okayed acquisition of 7.5% in HPL at an investment of Rs 150 crore. Does one of the promoters want to go ahead with only the IPO and not rope in IOC?
The debt restructuring package okayed by the CDR cell envisages a fresh capital infusion of Rs 450 crore. If IOC brings in Rs 150 crore, the IPO size should be around Rs 300 crore. While the principal promoters are yet to decide on IOC’s entry, HPL has paid off nearly Rs 300 crore to its lenders. The timing of the IPO is expected to be in the current fiscal, but the exact date is not yet decided. Kotak Mahindra Bank, the merchant bankers, are keen that the HPL issue should be floated as early as possible to take advantage of the present market sentiment. However, the merchant bankers cannot take a view on the size of the issue and the shareholding pattern of the company unless the promoters decide on the crucial issue of IOC’s entry.