The Hinduja Group is planning an initial public offering (IPO) to the tune of $800 million-$1billion (around Rs 3,680 crore to Rs 4,600 crore) for Petromin, the Saudi Arabian subsidiary of its lubricants arm Gulf Oil International. Petromin, a joint venture between Saudi Aramco and Mobil Investments, was acquired by Gulf Oil International and the Dabbagh Group of Saudi Arabia for $200 million in November 2007. Both companies own 50% stake each in the lubricants firm. Petromin is the largest maker of lubricants in Saudi Arabia, and had revenues of $500 million (Rs 2,300 crore) in FY10.

?We will use the funds raised to grow business in the Mina region. We are also looking at acquisitions and have identified a few,?said Sanjay Hinduja, chairman of Gulf Oil International, addressing a select gathering of the media here on Wednesday.

The group has appointed Saudi British Bank, HSBC’s affiliate in the kingdom, for managing the IPO, Hinduja added.

?Soon, we will be finalising the timeline and the exact valuations,? he told reporters, adding that the group is aiming for a listing in calendar year 2010 or latest by the first quarter of 2011.

The Hinduja Group would divest 30% of Petromin through the IPO. The lubricants maker owns a third of the downstream oil products business in Saudi Arabia and has $500 million in annual revenues, Hinduja said.

Hinduja said the group was also planning an IPO in Hong Kong for Gulf Oil Marine, another unit of Gulf Oil International that provides the shipping industry with marine lubricants and a range of technical service.

Gulf Oil is planning to tie up with a British firm to enter the defence business in India, Hinduja said, without giving details. The Hinduja Group also plans to generate 10,000 mw thermal power in India over five years, he said. The group, which has interests in financial and automobile businesses, acquired Belgian banking and insurance group KBC’s private banking arm KBL European Private Bankers for $1.7 billion in May.

KBL operations to be launched in India

The Hinduja Group has bigger plans in international private banking space after taking over Luxembourg-based KBL European Private Bankers SA for 1.35 billion euro ($1.69 billion) to expand its wealth management business in Europe.

The group, controlled by billionaire brothers Srichand and Gopichand Hinduja, has plans to bring in KBC Groep NV?s operation in India either by tying up with other Indian banks or with their own bank, IndusInd Bank. Gopi Chand Hinduja said, ?We have various plans for KBL and would soon launch its operations in India. We are buying KBL by making use of internal resources.? Hinduja said the group is also is working on a plan to change the name of IndusInd Bank. Hinduja plans to invest further in the business and to provide KBL access to ?fast growing? markets in the West Asia, India and Asia, said Srichand Hinduja, chairman, Hinduja Group.