In a press statement released by RIL that set up RPL as an individual unit in 2006 and raised the country’s largest initial public offering (IPO), said that the company has sold 4.01% of shares to institutional investors, adding that the move has helped the company to widen the shareholding plans at RPL. With the sale, the number of RPL shareholders has gone up from 12 lakh at the time of the IPO to about 16 lakh.

Whatever may be the reason behind the sale, speculation is rife in the stock market circles that it was done to avoid the controls that stopped the company in creating more positions in RPL using the imitative market. Sources said that the derivatives market will allow RPL to take a call on the movement of a stock price without physically holding that stock.

It may be mentioned here that RPL shares had zoomed a few weeks ago following assumptions that Chevron was increasing its stake in the company. In fact, Chevron has an option to raise its holding to about 29% soon after the commissioning of the refinery in late 2008. However, as of now, RPL’s market capital is bigger than the united market capital of all the three public sector majors, Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

In addition, RPL’s 580,000 barrel per day refinery, the sixth largest in the world, is being set up in the special economic zone (SEZ) in Jamnagar and an additional.0.9 million tone polypropylene plant is also being commissioned near the refinery.
 

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