ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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EPW Research Foundation Madras Refineries MADRAS REFINERIES (MRU one of the largest integrated refineries in the country, which produces a wide range of products such as cooking gas, petrol, diesel, kerosene, naphtha, lube base stocks and petrochemical feedstocks, is entering the market with a public issue of 2.96 crore equity shares aggregating Rs 242.85 crore to part finance four of the company's major projects. MRL has just commissioned a new 0.5 million tpa refinery at Cauvery basin. Its project for expansion of lube base stocks production to 2.7 lakh tpa has been mechanically completed. MRL is also setting up a 16,500 tpa LPG separation project at Cauvery basin and a co-generation power project at Manali. The aggregate cost of these projects is Rs 540.85 crore as appraised by SBI Capital Markets. Loans from the Oil Industry Development Board are being availed of for Rs 254.93 crore. The National Iranian Oil Company, one of the promoters of MRL, is being offered shares at a price of Rs 80 for an amount of Rs 43.06 crore. The present issue is to meet the residual requirement of Rs 242.86 crore. Out of the public issue, Rs 124.39 crore has already been placed on a firm allotment basis with mutual funds, financial institutions and foreign institutional investors (FIIs). For FIIs the shares are being priced at Rs 100. All other categories, including the public, will be offered shares at Rs 80. Placement with mutual funds (Rs 47.38 crore) and financial institutions (Rs 47.38 crore) at a price of Rs 80 per share has been made on a firm allotment basis. Out of the balance of Rs 118.47 crore, a reservation of Rs 2.72 crore has been made for employees and the offer to NRIs is for Rs 33.17 crore, leaving Rs 82.57 crore for the Indian public, MRL's turnover has been rising steadily and was Rs 1,643.57 crore in 1992-93, with profit before tax of Rs 91.62 crore and profit after tax of Rs 70.94 crore. The company raised its dividend to 25 per cent in 1992-93 from 21 per cent in the previous four years. The EPS for 1992-93 was Rs 6.22. The public issue, which will open on March 23, is being lead managed by SBI Capital Markets, Citibank, Standard Chartered, Indbank and DSP Financial Consultants.

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