NEW DELHI: Oil India Ltd, the nation’s second biggest state-run explorer, plans to raise Rs 1,500 crore through an initial public offering of equity shares by October.
“We have proposed a 10% float (to the government). Whether it is through the disinvestment route (government selling its stake) or through equity expansion which is for the government to decide,” OIL director (finance) T K Ananathkumar said.
Government currently owns about 98% equity stake in the unlisted OIL. Previously, government combined disinvestment of its shareholding with public floats in companies such as NTPC.“We expect Cabinet approval for our public offering by March/April and the issue would come within six months of that,” he said.
If the government does not disinvest its equity, the entire proceeds of the issue would go to the company. Interestingly, the Left parties, whose support is vital for survival of the UPA Government at the Centre, is opposed to any disinvestment in OIL but has not expressed reservation to a public float of an enlarged equity of the company.
OIL, whose operations are mainly concentrated in the North-East, is looking at acquisition of small to medium sized exploration and production companies overseas. “We are keen on expanding our overseas portfolio. We are scouting for opportunities with our partner Indian Oil Corp,” he said.