Oil India price band fixed at 
950-1,050
Bangalore: The government has a price band of 
950-1,050 per share for the initial public offering (IPO) of Oil India (OIL), the second state-run firm to hit the market this year. The company is planning to raise up to 4,982 crore from the public offering.
Under the twin offer for disinvestment in OIL, which produces 3.5 million tonnes of oil annually, the company will offer fresh equity of 2.64 crore shares or 11 percent, while the government will put on offer 10 percent of its stake in the company to state refiners. The IPO, the second after the highly successful offering by National Hydroelectricity Power Corporation (NHPC), will open on September 7 and close on September 11, 2009. OIL will be listed on the bourses on September 29.
The IPO will help mop up 4,507 crore at the floor price and 4,982 crore at the ceiling rate. Government would earn 1,995-2,205 and the company would get 2,512-2,777 at the lower and upper end of the band, respectively. Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13 percent to 78.5 percent.
Alongside the IPO, the government will sell 10 percent of its current holding in OIL to Indian Oil Corporation (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL). IOC will get about five percent while HPCL and BPCL would take about 2.5 percent each. Sources said the IPO proceeds would be used to fund the capital expenditure requirement of 2,300 crore for 2009-10 and 2,400 crore for 2010-11.
950-1,050 per share for the initial public offering (IPO) of Oil India (OIL), the second state-run firm to hit the market this year. The company is planning to raise up to 4,982 crore from the public offering.
Under the twin offer for disinvestment in OIL, which produces 3.5 million tonnes of oil annually, the company will offer fresh equity of 2.64 crore shares or 11 percent, while the government will put on offer 10 percent of its stake in the company to state refiners. The IPO, the second after the highly successful offering by National Hydroelectricity Power Corporation (NHPC), will open on September 7 and close on September 11, 2009. OIL will be listed on the bourses on September 29.
The IPO will help mop up 4,507 crore at the floor price and 4,982 crore at the ceiling rate. Government would earn 1,995-2,205 and the company would get 2,512-2,777 at the lower and upper end of the band, respectively. Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13 percent to 78.5 percent.
Alongside the IPO, the government will sell 10 percent of its current holding in OIL to Indian Oil Corporation (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL). IOC will get about five percent while HPCL and BPCL would take about 2.5 percent each. Sources said the IPO proceeds would be used to fund the capital expenditure requirement of 2,300 crore for 2009-10 and 2,400 crore for 2010-11.