(For IPO data and performance, please click on <IN/IPOMENU>) (Adds details, BPCL share price, background and bylines)
By Hiral Vora and Narayanan Somasundaram
MUMBAI, Feb 5 (Reuters) - India's Bharat Oman Refineries Ltd, an equal joint venture between state-run Bharat Petroleum Corp (BPCL.BO) and Oman Oil Co, will soon file for an initial public offer to raise up to 25 billion rupees ($635 million), three banking sources involved in the deal said.
The company plans to sell about 48 percent through the public offer and a pre-IPO placement, the sources told Reuters on Tuesday.
"We hope to file the draft prospectus by the end of this week or early next week," one said.
Bharat Petroleum declined comment on the deal.
Bharat Oman Refineries is building a 120,000 barrels per day (bpd) refinery at Bina in the central Indian state of Madhya Pradesh at a cost of about 104 billion rupees and has tied up a debt portion of about 64 billion rupees.
It is expected to be commissioned by end-2009.
Asian refiners are adding capacity to feed demand in developed nations where there has been little expansion in recent years and India hopes to become a regional refining centre.
India, Asia's third-largest oil consumer, plans to expand its refining capacity by 62 percent to 4.82 million bpd by 2012, to take advantage of its proximity to oil sources and emerging markets.
BPCL runs a 240,000 bpd refinery in Mumbai, India's financial hub, and another 150,000 bpd refinery in Kochi in the southern state of Kerala. Its subsidiary Numaligarh Refinery Ltd runs a 60,000 bpd refinery in north-east India.
A volatile stock market has soured appetite for new offerings and property developer Emaar MGF Land and healthcare services company Wockhardt Hospitals last week lowered the indicated price bands for their IPOs.
In January, Reliance Power Ltd received bids for $190 billion for its $3 billion IPO.
Analysts said the offering sucked cash from the market and contributed to a 13 percent drop in the BSE index .BSESN in January, when global market turbulence also weighed.
Still, Indian companies are expected to raise up to $15.8 billion from new listing this year, almost twice as much as last year's record $8.3 billion, according to Thomson Financial.
Reliance Infratel Ltd, a unit of No. 2 mobile operator Reliance Communications Ltd (RLCM.BO), said on Monday it had filed papers for an IPO with media reports saying it may raise up to $1.5 billion.
UTI Asset Management's $500 million offer and JSW Energy's $1 billion issue are also expected to hit the market this year.
By 0610 GMT, shares in Bharat Petroleum were up 0.8 percent at 435.90 rupees in a Mumbai market that eased 0.4 percent.
Last week Bharat Petroleum said its board had approved a proposal to subscribe to Bharat Oman's IPO, with an overall stake to be limited to 48 percent.
The company said its investment in Bharat Oman would not exceed 19.96 billion rupees.
The banking sources said after the IPO Oman Oil's holding in the company would come down to less than 10 percent from 50 percent now.
SBI Capital Markets, Citibank (C.N) and ICICI Securities are among the arrangers of the issue, sources said. ($1 = 39.4 Indian rupees) (Editing by Ranjit Gangadharan)