Reliance Petroleum created history with its IPO and now it will be listing on the bourses on*May 11, 2006 on the BSE and NSE. *
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The issue was*made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, SEZ, at Jamnagar in Gujarat. The export-oriented refinery will have a capacity to process 5,80,000 barrels per day making it the sixth largest refinery in the world. As a part of this project, RPL is also setting up a 900,000 tonne per annum polypropylene plant. The project is likely to go on stream by December 2008.
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Moneycontrol spoke to experts*on the latest offering from the Reliance stable and its future prospects.
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RS Iyer of KR Choksey is expecting Reliance Petroleum to list above Rs 95. He believes that it will stabilize between the Rs 75-80 range.*
An investor should wait for atleast*six months and gauge its future prospects before*taking a*decision on whether to hold or sell.
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Iyer*further added, "IPO's will continue to boom until the markets are in a bull phase."
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Sumeet Rohra of Antique Stock Broking anticipates RPL to list above Rs 85-90. It will stabilize above Rs 80, he says adding, "It is a good stock to buy. One can invest with a long term view."*
Investment Advisor SP Tulsian believes that RPL will open between Rs 96-100 or may be above Rs 100. He does not expect the stock to go below Rs 95.
The net size of the initial public offer, IPO available to the public was 45 crore shares. Retail investors had the option of paying only Rs 16 per share on application.
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The Subscription pattern:
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The issue has been subscribed 51.32 times. The retail portion has been subscribed 14.91 times. The total bids received were 2,309.53 crore (23.09 billion). The total bids received at cut-off price were 198.04 crore (1.98 billion). The qualified institutional buyers, QIBs, portion has been subscribed 68.22 times.
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The non-institutional investors portion has been subscribed 59.13 times. The retail investors portion has been subscribed 14.91 times.
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The following listed companies have a stake in RPL:**
COMPANY Shares (No)
RIL 337.5 crore*
SBI 5.22 crore*
IDBI 3.35 crore*
PNB 2.15 crore*
BOB 2 crore*
Canara Bank 2 crore*
Allahabad Bank 1 crore*
OBC 1 crore*
BOI 60 lakh*
Syndicate Bank 60 lakh*
UTI Bank 60 lakh
