The much awaited Initial Public Offer of 2.64 crore equity shares of face value Rs. 10 by Oil India Ltd., the second largest Oil and Gas Company in India will be open on Monday.
The shares of the company which come at a price band of Rs. 950 and Rs.1050 through 100% book building method is the second such occasion in recent times when a state run firm is going public. Earlier, the Initial Public Offer of shares of National Hydro Power Corporation received overwhelming response from the primary market with the issue getting oversubscribed 23 times. The OIL IPO would close on September 10.
Out of the 2.4 crore equity shares open for purchase, 24.0 lakh have been kept for subscription by the employees of the company who would be issued the share at issue price.
With this IPO, the company plans to raise between Rs. 4,507 crore and Rs. 4,982 crore. Out of this, the government is expected to earn between Rs. 1995 crore and Rs. 2,205 crore. Government would also sell the 10% of its total holdings in the company to several oil and gas majors such as Indian Oil, Bharat Petroleum and Hindustan Petroleum which would effectively bring down the government’s total holding from 98.13% to 78.5%.
Tuesday, September 8, 2009
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