New Delhi: State-run Oil India Ltd’s initial public offering (IPO) has been put off to the next fiscal because of volatile market conditions.
“Market is volatile and conditions bad for an IPO. We do not think we can go ahead with the plans under such a scenario,” OIL Director (Finance) S. Ananthkumar said.
OIL, the nation’s second biggest state-run oil and gas explorer, was to launch its IPO of 2.64 crore equity shares on 10 November, but the reversal of fortunes on the stock markets led to its deferment by a few weeks. It now has been put back for at least a couple of months.
“We are closely watching the market conditions. Whenever it appears that the market has stabilised, we will launch it,” Ananthkumar said but refused to put any date to the offering.
Asked if the IPO may come only next fiscal, he said: “As of now, we can take that view.”
He said that OIL has capital market regulator Sebi’s approval, valid till 10 September 10, 2009 adding: “We have in consultations with the Ministries of Petroleum and Natural Gas and Finance and Department of Disinvestment deferred the IPO for the time being.”
“IPO timing will have to be reworked in consultations with the government,” he said.
The government holds 98.13% stake in OIL, which produces close to four million tonnes of crude oil annually.
Alongside the IPO, government is to sell 10% of its current holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.