Oil India to hit market on 7th September

Oil India Ltd (OIL) is expected to hit the market with an initial public offering (IPO) on 7th September. According to a Petroleum Ministry official, the IPO may open for public subscription on 7th September 7 and will close on 11th September.

OIL will offer 2.64 crore equity shares to public in the IPO. At the same time government will sell 10 per cent of its stake in the company to state refiners. After IPO the government's stake in the company will reduce from 98.13 per cent to 78.5 per cent.

The proceeds from IPO would be utilized 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.

For IPO, OIL started negotiations with bankers, comprising HSBC Securities & Capital Markets, JM Financial Ltd, Citigroup Global Market India and Morgan Stanley India.