Gujarat State Petroleum Corporation (GSPC) has filed for an initial public offer with capital market regulator Securities and Exchange Board of India (SEBI), a source has said.

The State government-owned oil and gas exploration company will offer 48.5 crore new equity shares of the face value Re. 1 apiece to raise Rs. 3,050 crore from the market, the source said.

When contacted, the company spokesperson declined to comment. The company will use the IPO proceeds to fund its existing projects and repay loans. Around Rs. 1,200 crore will be used to fund the Deen Dayal Block in the KG Basin, the source said. The Directorate General of Hydrocarbons (DGH) has certified two TCF (trillion cubic feet) gas reserves in GSPC's Deendayal blocks. Currently, exploration is underway in its KG-OSN 2001/3 located in the Deendayal West field and so far 16 wells have been drilled in the area.

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