Oil India expected to go public on September 7

By siliconindia   |   Friday, 17 July 2009, 19:12 IST   |    2 Comments
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Oil India expected to go public on September 7
Bangalore: After its plan to hit the market was deterred in November last year, Oil India (OIL) may now launch its initial public offering (IPO) on September 7, 2009. "As per the tentative schedule drawn, the IPO may open for public subscription on September 7 and will close on September 11," a Petroleum Ministry official said. OIL was to launch its IPO of 11 percent equity shares on November 10, 2008, but the unfavorable market conditions led to the deferment of the plan. OIL, which produces 3.5 million tonnes of oil per year, will offer 2.64 crore equity shares to public in the IPO, while the government will simultaneously sell 10 percent of its stake in the company to state refiners. Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13 percent to 78.5 percent. The official said the IPO proceeds would be used to fund capital expenditure requirements for 2009-10 of 2,300 crore and 2010-11 of 2,400 crore. OIL has started discussions with bankers, including HSBC Securities and Capital Markets, JM Financial, Citigroup Global Market India and Morgan Stanley India for the IPO. Alongside the IPO, government is to sell 10 percent of its current holdings in OIL to Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum.

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