Oil India Ltd might price its IPO closer to the prevailing share price of Oil and Natural Gas Corp (ONGC) and is said to open on September 7 and close on September 11 at Rs 1,000-1,100 a share whereas OIL feels that its earnings per share (EPS) and book value are better than ONGC so it is looking at pricing the issue in that range.
Additionally, OIL, produces 3.5 million tonnes of oil annually, and will offer 2.64 crore equity shares or 11% to the public through the IPO, the government, however, will at the same time sell 10% of its stake in the company to state refiners where IOC will get about 5% whereas HPCL and BPCL would take about 2.5% each.
Moreover, post-IPO and disinvestment, government's stake in the company will decline from 98.13% to around 78.5% while the IPO proceeds would be used to fund the capex requirement of Rs 2,300 crore for 2009-10 and Rs 2,400 crore for 2010-11.
No comments:
Post a Comment