Mumbai: Oil India Ltd (OIL), the nation's
second-largest state-run explorer, will hit the market with an
Initial Public Offering (IPO) on September 7.
The offer will be open from September 7 to 11, a source
close to the development said.
The price band for the IPO is likely to be fixed on
August 25, the source said.
OIL management is currently holding meetings with bankers
in Mumbai and would be visiting Hong Kong and Singapore over
the next couple of days.
OIL, which produces 3.5 million tonnes of oil annually,
will offer 2.64 crore equity shares to the public through the
IPO, while the government will simultaneously sell 10 percent
of its stake in the company to state refiners.
An 11 percent fresh equity will be sold in the IPO
while the government would divest 10 percent of its stake at
the IPO price.
Post-IPO and disinvestment, the government's stake in the
company will decrease from 98.13 percent to 78.5 percent.
The source said the IPO proceeds would be used to fund
capex requirement for 2009-10 and 2010-11 when it had planned
Rs 2,300 crore and Rs 2,400 crore expenditure respectively.
OIL has started discussions with bankers, including HSBC
Securities & Capital Markets, JM Financial Ltd, Citigroup
Global Market India and Morgan Stanley India for the IPO.
Bureau Report
First Published: Saturday, August 08, 2009, 14:53