In early 2006, India’s Reliance Petroleum announced that it would hold an initial public offering (IPO) of its common shares. The announced IPO was for 1.8 million shares at an estimated price range of 57 to 62 rupees per share, or approximately \($2.5\) billion to \($2.7\) billion.

Because of exceptionally strong investor interest worldwide for Reliance Petroleum company shares, and especially for oil and gas company shares, the Reliance Petroleum IPO was oversubscribed by 7.5 times (the total number of shares sought by investors was 13.5 million). Discuss what strategies Reliance Petroleum might adopt in response to this dramatic oversubscription of its initial public offering. If Reliance’s outstanding shares total 7.2 million shares following the IPO, what is the implicit value of the entire company? (Reliance Petroleum’s remaining outstanding shares were held by its parent company Reliance Industries.)