Kolkata: State-owned PSU Oil India Limited (OIL), which recently received SEBI approval to float an IPO, would raise debt instead if market conditions are not conducive for the offer, a company official said.

OIL Chairman and managing director M S Pasrija told reporters here that the company had got SEBI approval on 11 September for the proposed IPO.

He said that the company was required to float the offer within a period of 90 days from 11 September.

To a query Pasrija replied “we are going ahead with the IPO activity, we hope to come out with the offer soon.”

Asked whether the prevailing market conditions were suitable for floating the issue, Pasrija said “we are watching the market conditions very closely.”

Commenting on the failure to float the IPO and its effect on the company’s capital expenditure plans, he said “in that case, OIL would raise debt. We are a debt-free company.”

For the current financial year and the next, the company has earmarked an expenditure of Rs4,575 crore for exploration and production (E&P), both domestic and overseas.