Calcutta, Dec. 31: The promoters of Haldia Petrochemicals Limited (HPL) ' the Chatterjee group and the Bengal government ' will request Industrial Development Bank of India (IDBI) to extend the December 31 deadline for implementing the debt restructuring package.
The company ends the year without a fresh infusion of equity. Indian Oil Corporation's (IOC) entry has not been cleared either.
A rumour that Purnendu Chatterjee of The Chatterjee Group is unwilling to rope in IOC is also doing the rounds. Instead, he wants to go ahead with the IPO alone.
Bengal commerce and industry secretary Sabyasachi Sen said: 'IOC will surely join the company. It is expected that IOC will pump in fresh equity in the current fiscal. The Bengal government is strongly in favour of IOC joining Haldia Petrochemicals.'
But the much-awaited board meeting of Haldia Petrochemicals to approve IOC's entry is yet to take place. Sen said the promoters will soon approve IOC's entry into the board.
IOC's board has already okayed acquisition of 7.5 per cent in Haldia Petrochemicals with an investment of Rs 150 crore. They have shifted from their earlier proposal of acquiring management control in the company with a 26 per cent stake for an investment of Rs 468 crore.
If the company misses the deadline for implementing the debt restructuring package, they have to approach IDBI for an extension, Sen added. The debt restructuring package okayed by the CDR cell envisages a fresh capital infusion of Rs 450 crore. If IOC brings in Rs 150 crore, the IPO size should be around Rs 300 crore.
However, it is not clear when the company will float its IPO. Sen said: 'We hope to float the IPO in the current fiscal. The company is talking to the merchant bankers about the different modalities involved.' Kotak Mahindra Bank has been appointed as the merchant banker.
The merchant bankers are also keen that the Haldia Petrochemicals issue should be floated as early as possible to take advantage of the present market sentiment.
However, the merchant bankers cannot take a view on the size of the issue and the shareholding pattern of the company unless the promoters decide on the crucial issue of IOC's entry. Sen said the merchant bankers will advise the company about the appropriate time of entering the market.
While the principal promoters are yet to decide on IOC's entry, HPL has paid off nearly Rs 300 crore to its lenders, sources said.