Hindustan Petroleum Corpo-ration Ltd (HPCL) has decided to shelve its plan to raise funds for the 9-million tonnes Bhatinda refinery through initial public offer (IPO).
The corporation will now issue convertible bonds through its subsidiary Guru Govind Singh Refinery Ltd to mop up the required funds.
The corporation has opted for the bond route to avoid any change in the equity pattern. If it had gone for IPO, the government's equity in HPCL would have come below 51 per cent.
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HPCL accounts for 20 per cent marketing share and controls 23 per cent of the country's refining capacity. After the commissioning of the Bhatinda refinery, its refining capacity will far outstrip its marketing share.
HPCL has a paid-up share capital of Rs 221 crore. Of this the government holds 51.06 per cent of equity, financial institutions 24.62 per cent, foreign institutional investors 11.64 per cent, mutual funds 4.44 per cent, non-resident Indians 2.77 per cent, employees 1.24 per cent, banks 1.57 per cent and other 2.02 per cent.