Initial Public Offer of Oil India Ltd has been put off to the next fiscal on account of unstable market conditions. The nation's second biggest state-run oil and gas explorer was to launch its IPO of 2.64 crore equity shares on November 10 as per the earlier schedule. However, the turnaround 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.
According to the OIL Director (Finance) S Ananthkumar, Market is volatile and conditions bad for an IPO. We do not think we can go ahead with the plans under such a scenario. We are closely watching the market conditions. Whenever it appears that the market has stabilized, we will launch it. OIL has capital market regulator SEBI's approval, valid till September 10, 2009. IPO timing will have to be reworked in consultations with the government.
The government holds 98.13 per cent stake in OIL, which produces nearly four million tonnes of crude oil yearly. Together with the IPO, government is to sell 10 per cent of its current holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.
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