Oil India Files Papers For IPO

MUMBAI: State-run Oil India Ltd on Monday said it has filed the Draft Red Herring prospectus with the market regulator SEBI for its initial public offering.

The company would offer 2,64,49,982 equity shares of Rs 10 each for cash at a price to be decided through a book-building process, a company statement said.

The company is likely to enter the capital market by February next year, merchant banking sources said.

Currently, the government has 98.17 per cent stake in the company, while the remaining stake is with employees. After the IPO, government's stake will come down to 78.43 per cent.

The government is divesting 10 per cent of its equity to the general public. Besides, a similar quantum is being sold to Indian Oil, Bharat Petroleum and Hindustan Petroleum. The remaining stake would remain with the employees.

The issue comprises a net issue to the public of up to 2.40 crore equity shares, while 24.04 lakh shares have been reserved for subscription by eligible employees.

Out of the net issue, 60 per cent is required to be alloted to the Qualified Institutional Buyers, while about 30 per cent would be allocated to the retail investors and 10 per cent to the non-institutional bidders.

The issue would constitute 11 per cent of the fully diluted post-issue paid-up capital of the company, it said.

The equity shares offered are proposed to be listed on the Bombay Stock Exchange and National Stock Exchange.

The book running lead managers to the issue are JM Financial Consultants Private Ltd and Morgan Stanley India company, Citigroup Global Markets and HSBC Securities and Capital Markets.