India's Reliance eyeing $588 mln share sale-report

MUMBAI Wed Jan 6, 2010 10:37pm EST

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MUMBAI Jan 7 (Reuters) - Energy major Reliance Industries (RELI.BO) may sell existing shares to institutions to raise about 26.75 billion rupees ($588 million) over the next few weeks, the Business Standard newspaper said, citing unnamed sources.

Reliance on Monday raised $577 million through a share sale, the second big equity fund raising in under four months for India's largest listed company as it looks to buy bankrupt petrochemicals firm LyondellBasell. [ID:nSGE60304C]

Analysts and dealers have said the company may look to raise more funds through another share sale.

Reliance may sell the shares at a discount of 2-4 percent, and bankers had started talks with institutions, the Business Standard said, citing two unidentified investment bankers.

Shares in Reliance closed at closed at 1,088.80 rupees on Wednesday.

A spokesman for Reliance declined to comment. ($1=45.5 rupees) (Reporting by Pratish Narayanan; Editing by Surojit Gupta)

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