Reliance Petroleum advanced 3.06%, to Rs 67.45 on a high volume, extending its recent rally.


The counter saw 32.35 lakh shares being transacted on BSE, compared to a two-week average volume of 13.43 lakh shares.

On 31 August, RPL clocked a volume of 32.61 lakh shares and 42.91 lakh shares on 01 September.

The stock has steadily advanced in the past. From Rs 60 on 09 August, it rose to Rs 65.45 by 04 September 2006, as buying continued. The rally materialised on the back of rising volumes.

RPL was incorporated as a 100% subsidiary of Reliance Industries (RIL) in October 2005 to set up a grassroot petroleum refinery and polypropylene (PP) plant in the special economic zone (SEZ) at Jamnagar. This new refinery, located adjacent to the existing refinery and petrochemical complex of RIL, will comprise secondary processing facilities to maximise the quantity of value-added products such as alkylates, diesel, aviation turbine fuel, and polypropylene. The refinery will be even more complex compared with RIL's existing refinery, processing lower quality crude and earning better margin.

RPL's new refinery in Jamnagar will have a capacity of 5,80,000 barrels per day (bpd) and a polypropylene unit with a capacity of 9,00,000 tonnes per annum. The estimated cost of the project is $6 billion, or Rs 27,000 crore, and is expected to commence production only in December 2008.

Chevron Corporation had picked up a 5% stake in RPL for $ 300 million. Chevron said it also has rights to increase its stake to 29%. RIL shareholding in RPL has come down to 75% after the IPO. Total foreign holding is 2.78% while that of Institutions is 6.35%. Public hold 6.98% stake in RPL.