Reliance Petroleum's Triple Option Convertible Debentures (B)

The issue was the largest during that time in India and was made available to the public through an innovative financial instrument in the form of Triple Option Convertible Debentures (TOCDs). The TOCD was not structured as a conventional debt instrument. Each TOCD was issued for a face value of Rs.60. This included two equity shares allotted to the investors at a face value for Rs 10 each. The remaining Rs 40 comprised of a non-convertible accompanied by two detachable warrants.² The TOCD holders could exercise the option to convert their instrument into equity shares in September 1997 that is, between the 47th and 49th months from the date on which the TOCD was issued (Refer Exhibit I for complete details of the TOCD issue).

The delay was caused by the were mainly due to the scaling up of the proposed capacity from the initial nine million to 18 million tons and eventually to 27 million tons. With this increase in capacity, RPL became the world's largest grassroot refinery and seventh largest operating refinery in the world. The project commenced with the acquisition of land, which happened in December 1994. The construction commenced only in the year 1996, with the leveling of land and laying of equipment foundations. The increase in the plant's capacity from 9 million tons to 18 million tons was officially announced in April 1998, followed by a further increase in capacity in December 1998 to 27 million tons. The project was eventually commissioned in the financial year 1999-2000.