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Oil India IPO to open on September 7
By siliconindia
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Monday, 10 August 2009, 23:05 IST
Bangalore: Oil India's initial public offering (IPO) will open on September 7, 2009. The public offering will also result in the dilution of 10 percent government stake in the company. According to investment banking sources associated with the stake-sale, the price band is likely to be decided on August 25.
Oil India will be the second Public Sector Unit (PSU) stake sale by the government after National Hydroelectric Power Corporation (NHPC), which was oversubscribed three-and-a-half times on its opening on Friday. Along with NHPC, Oil India was listed for IPO and simultaneous government stake sale during the first term of the UPA government. But, the public offerings of both the companies were put on hold after the market went down in the wake of economic downturn.
India's second-biggest state-run oil producer after ONGC, Oil India will offer 2.64 crore equity shares to public in its initial offering, while the government will simultaneously sell 10 percent of its equity in the company to other state-run refiners. Indian Oil Corporation will get five percent, while HPCL and BPCL will take 2.5 percent shares each.
Oil India will make an offering of 11 percent fresh equity. After the stake sales, the government's stake in the company will decrease from 98.13 percent to 78.5 percent. The stake sale proceeds will be used to fund capital expenditure requirement for 2009-11.