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Oil India plans IPO in September

Oil India plans IPO in September
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First Published: Tue, Jun 02 2009. 03 12 PM IST
Updated: Tue, Jun 02 2009. 03 12 PM IST
New Delhi: Oil India aims to launch its delayed initial public offering in September if markets hold up and will also sell stakes to other state-run oil marketing firms, chairman N.M. Borah said on Tuesday.
The IPO was deferred last year as markets tumbled but the recent surge in shares has seen the explorer revive listing plans.
“We are preparing a revised roadmap. Formal approval yet to be taken. Our tentative roadmap is for September subject to market conditions, subject to board approval and subject to government approvals,” he said.
Borah said the IPO would inolve an issue of 11% of new shares and the sale of a 10% stake to state firms, with the funds to be used for exploration and production in 2009/10 and 2010/11.
Last year, before it was deferred, the company had aimed to raise more than Rs15 billion ($320 million) in its initial public offering.
The government currently holds 98.13% stake in Oil India.
“Oil India was given the mandate to go ahead with it, but they did not because share prices crashed. Now share prices are correcting, so I think this should be done by September,” oil secretary R.S. Pandey said.
Oil India’s director of finance, T.K. Ananth Kumar, said the company planned to invest Rs23 billion as capital expenditure this fiscal and Rs24 billion next year.
The company plans to sell a 5% stake to Indian Oil Corp. and 2.5% each to Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd, Kumar said.
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First Published: Tue, Jun 02 2009. 03 12 PM IST