Oil India IPO OIL IPO: Review Analysis & Details

So finally, the government has given the nod for the OIL India IPO. We have been tracking this issue since August 2008, when there were strong news that OIL India IPO may hit the markets. Sooner or later, it has arrived. The news is that it may open on September 7, 2009, so investors, keep your money ready by that time.
In this article, we will look at the review, analysis and fine details of the Oil India IPO and try to do the Review and analysis of Oil India IPO.
Some basic details first, as per DRHP filed by the company on December 14, 2007:
What is the issue size of the Oil India IPO?
The issue size is not known currently. But it is learnt that the public issue will be for selling around 26,449,982 (26 million) equity shares

What is the face value or nominal value of Oil india IPO?
The face value is the standard Rs 10 each.

How is the share distribution done?
Public sale portion is of up to 24,045,438 equity shares & there are some 2,404,544 equity shares reserved for employees.

The issue will be around 11% of the fully diluted post-issue capital of the company.

How will the capital raised by OIL India IPO be used?
The use of capital will be as follows:
1. exploration and appraisal activities;
2. development activities in producing fields
3. purchase of capital equipments and contracts for facilities
4. diversification of existing business in downstream activities

What is the price band of the Oil India IPO
The price band for shares of Oil India IPO is not yet decided.

What is the trading symbol & exchange for the Oil India IPO
No info is available about the trading symbol, but the listing will be on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

What are the IPO dates for Oil India IPO
The IPO for OIL India is expected to come out on September 7th, 2009.

Who are the underwriters of the Oil India IPO?
JM Financial Consultants, Morgan Stanley, Citigroup and HSBC Securities are the book running lead managers to the issue. Karvy is the registrar.

What are the analysts recommendations for this IPO?
The demand for Oil & Enrgy is going to increase leaps and bounds. With the scarcity of Alternative Energy sources being identified and implemented in countries like India, the Oil companies are expected to be benefitting if they can generate good business. Moreover, the government has recently given open freedom to companies to decide the prices. Hence, you can expect some better business prospects for OIL India

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)