Yet another delay in Haldia Petrochemicals IPO

24-Jan-05

Yet another delay is likely in the Haldia Petrochemicals' (HPL) initial public offering (IPO). Most likely, the IPO of HPL is likely to hit the market only in May and not in February as projected earlier. The proposal ahs been cleared by the board, which met in the middle of January. As per the terms and conditions of the financial restructuring package of HPL, which was approved by the banks and financial institutions, the company was supposed to get its equity listed on the bourses by the end of 2004. Currently, the draft prospectus is being readied and will be submitted to the Securities and Exchange Board of India in February. It seems that a date in April-end or early-May will be most likely fixed as the "time-line" for the proposed IPO. HPL is likely to offer 30 crore shares and is expected to opt for the book building route for the issue. Kotak Mahindra, DSP Merrill Lynch and JP Morgan Stanley will manage the issue and its size is likely to be Rs 650 crore. The price band would be finalised only at the last moment. The board of directors has also approved the proposal on Indian Oil Corporation (IOC) being inducted as a strategic partner in the company, with a likely investment of Rs 150 crores for a 7.5% stake. IOC will become the fourth major stakeholder in HPL along with the West Bengal Government (stake held through West Bengal Industrial Development Corporation), The Chatterjee Group and the Tatas.