After IBP, Reliance-controlled Indian Petrochemical Corporation Ltd on Friday filed the draft prospectus for public offer of government's residual stake in the country's second largest petrochemical company.

According to sources, IPCL's draft red herring prospectus for the public issue being done through the book-building route has been filed with the Securities and Exchange Board of India.

The Divestment Development: Complete Coverage

After selling its 26 per cent equity to Reliance Industries Ltd in 2002 for Rs 1491 crore (Rs 231 per share), government now holds about 33.95 per cent stake in IPCL.

Of the residual stake, about five per cent would be given to employees, while the remaining 29 per cent stake would be offloaded in the primary market, translating into about 7.19 crore (71.9 million) shares.

Sources said that the allotment to Qualified Institutional Buyers, non-institutional buyers and retail investors would be decided later.

Earlier this week, IBP filed its prospectus with Sebi for sale of government's residual stake of 26 per cent in the company. ICICI and Kotak are the book-runners of the issue for sale of 57.58 lakh (5.7 million) shares.