New Delhi: State-run Oil India Ltd’s initial public offering has been put-off by at least a month in view of the choppy market conditions.
OIL was to launch its IPO of 2.64 crore equity shares on 10 November but the reversal of fortunes on the stock markets has led to a re-think on the timing.
“The 10 November deadline cannot be kept. Market conditions are not right for the IPO now. I do not know when the issue will be rescheduled but it is unlikely to happen before December,” a senior company official said.
“IPO timing will have to be reworked in consultations with the Government... we are keeping a close watch on market conditions,” he said.
Government currently holds 98.13% stake in OIL, which produces close to four million tons of crude oil a year. Alongside the IPO, government is to sell 10% of its current holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.
Post-IPO and equity transfer, government shareholding in the company will come down to 78.43%. IOC will hold 4.45% equity stake in the expanded equity base while HPCL and BPCL would hold 2.23% each. Public holding would be 12.66%.
The official said OIL had received all approvals for the IPO from market regulator SEBI and was watching market conditions.
“We have fully complied with SEBI regulations on independent directors on the company board. We now have six independent directors on our board besides one government director,” he said.
The appointment of independent directors on OIL board had been holding up the IPO since early 2008.