OIL IPO: OIL India Limited IPO

A new IPO or initial public offer is set to hit the Indian Markets very soon. The IPO belongs to OIL or Oil India Limited. The OIL India IPO is expected to hit the Indian markets in the month of November 2008, as per the news.

What are the subscription dates of OIL India IPO ?
The OIL India IPO will open sometimes in November 2008. Though there is no confirm news about the OIL India IPO, the articles appearing on various news sites mention that the OIL India IPO will hit the markets in November.

What is the current holding pattern of OIL India Limited?
The company is owned by the government of India - 98%. The company produces 60,000 barrels per day (bpd) of oil from its reserves in northeastern India and the desert state of Rajasthan in the western part of India.
OIL has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and majority of gas production. Rajasthan is the other producing area of OIL, contributing 10 per cent of its total gas production.

Additionally, OIL’s exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan.

In a recent CRISIL-India Today survey, OIL was adjudged as one of the five best major PSUs and one of three best energy sector PSUs in the country.

How many shares will be sold through the OIL India IPO?
A total of 26.4 million shares will be sold through the OIL India IPO.

How much capital money will be raised through the OIL India IPO?
Around 380 million US Dollars are expected to be raised by the OIL India IPO.

Where will the fund raised through the OIL India IPO be used?
The capital raised from the OIL India IPO will be used to fund exploration, development and purchase of equipment.

What is the corporate structure of the OIL India Limtied?
There were a few initial issues with the OIL India IPO. The IPO was delayed partly because the company could not appoint independent directors on its board, but it is learnt that the issue had now been resolved.

The company has also said in the past it plans separately to sell a 5 percent stake to Indian Oil Corp (IOC) and 2.5 percent each to Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL)