OIL’s IPO on 7 September: report
08 Aug 2009
Oil India Ltd (OIL), the nation's second-largest state-run explorer, will come out with an initial public offering on 7 September. The offer will be open up to 11 September, according to a PTI report quoting unnamed sources. The price band for the IPO is likely to be fixed on 25 August.
The OIL management is currently holding meetings with bankers in Mumbai and would be visiting Hong Kong and Singapore over the next couple of days, the report adds.
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.
Eleven per cent of fresh equity would be sold, while the government would divest 10 per cent of its stake at the IPO price. After the IPO and disinvestment, the government's stake in the company will decrease from 98.13 per cent to 78.5 per cent.
The source said the IPO proceeds would be used to fund capital requirements for 2009-10 and 2010-11, when it has planned Rs2,300 crore and Rs2,400 crore expenditure respectively.