Oil India to launch IPO

Kolkata: The Centre is considering unveiling an initial public offering (IPO) for the Rs10,000-crore Oil India.

The union petroleum and natural gas ministry is currently preparing a draft proposal in this regard for submission before the Cabinet committee, shortly. The sources said the Ministry had also initiated dialogue with the Left in this regard.

Sources said the Ministry had underlined the need for raising finances by issue of fresh equity shares - to the extent of 10 per cent of the expanded capital base - to finance OIL's plans to enhance exploration and production activities in India and the abroad.

While the exact issue size would depend on the premium charged, informed sources expect the IPO to raise anywhere between Rs1,800 crore and Rs2,000 crore.

OIL has registered a net profit in excess of Rs1,600 crore during the last fiscal on a turnover of Rs10,000 crore and a reserve of Rs4,000 crore.