Reliance Petroleum moves up stake sale buzz
Reliance Petroleum moved up 1.20% to Rs 264.70 at 10:21 IST on reports US-bsed Chevron is likely to buy additional 21% in the company for over Rs 24,000 crore.
The scrip had touched a high of Rs 275 and a low of Rs 249 so far during the day. The stock had hit a 52-week high of Rs 295 on 1 November 2007 and a 52-week low of Rs 56 on 9 November 2006.
The scrip had outperformed the market in the one month to 1 November 2007, galloping 64.32% as against the Sensex's 13.83% gain. It had also outperformed the market in the past three months, surging 143.13% against the Sensex's 32.06% rise.
Mukesh Ambani-controlled refining firm has an equity capital of Rs 4500 crore. Face value per share is Rs 10.
Chevron may buy the stake for upwards of Rs 250 a share. This will be the largest inbound equity investment in the country, the report added.Reliance Industries, the parent company, had sold a 5% stake in Reliance Petroleum to Chevron in April 2006 for Rs 1,350 crore with an option to Chevron to scale up its holding to 29%.
Reliance Industries, currently holds 75% in the company. Report suggests that it is, however, not clear whether Chevron will buy the stake from Reliance Industries or fresh equity issued by Reliance Petroleum.
At the time of selling Chevron the 5% stake, Reliance Industries had made Chevron a co-promoter in Reliance Petroleum. So if Chevron buys the 21% stake from Reliance Industries, it will not trigger the mandatory open offer for another 20% holding in Reliance Petroleum. The open offer will, however, be triggered by a fresh equity issuance by Reliance Petroleum.
Reliance Petroleum was incorporated as a 100% subsidiary of Reliance Industries (RIL) in October 2005 to set up a grassroot petroleum refinery and polypropylene (PP) plant in the special economic zone (SEZ) at Jamnagar.
The scrip had touched a high of Rs 275 and a low of Rs 249 so far during the day. The stock had hit a 52-week high of Rs 295 on 1 November 2007 and a 52-week low of Rs 56 on 9 November 2006.
The scrip had outperformed the market in the one month to 1 November 2007, galloping 64.32% as against the Sensex's 13.83% gain. It had also outperformed the market in the past three months, surging 143.13% against the Sensex's 32.06% rise.
Mukesh Ambani-controlled refining firm has an equity capital of Rs 4500 crore. Face value per share is Rs 10.
Chevron may buy the stake for upwards of Rs 250 a share. This will be the largest inbound equity investment in the country, the report added.Reliance Industries, the parent company, had sold a 5% stake in Reliance Petroleum to Chevron in April 2006 for Rs 1,350 crore with an option to Chevron to scale up its holding to 29%.
Reliance Industries, currently holds 75% in the company. Report suggests that it is, however, not clear whether Chevron will buy the stake from Reliance Industries or fresh equity issued by Reliance Petroleum.
At the time of selling Chevron the 5% stake, Reliance Industries had made Chevron a co-promoter in Reliance Petroleum. So if Chevron buys the 21% stake from Reliance Industries, it will not trigger the mandatory open offer for another 20% holding in Reliance Petroleum. The open offer will, however, be triggered by a fresh equity issuance by Reliance Petroleum.
Reliance Petroleum was incorporated as a 100% subsidiary of Reliance Industries (RIL) in October 2005 to set up a grassroot petroleum refinery and polypropylene (PP) plant in the special economic zone (SEZ) at Jamnagar.
Labels: Reliance Petroleum
posted by SY at 12:55 PM
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