Oil India LtdIPO likely to come in October

Oil India Ltd., (OIL) is a large natural gas and petroleum company in India under the administrative control of the Ministry of Petroleum and Natural Gas of the Government of India. OIL is engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of liquid petroleum gas.

Initially OIL IPO was expected in Jan-feb of this year, but it has been delayed due to non-availability of due approval for expansion of the board which was considered a pre-requisite. Now, OIL is expected to come for an IPO in october. The tentative decision on IPO timing follows the recent approval by the Centre for appointing six new independent directors on board and conform to clause 49 of the listing agreement. According to sources, the OIL board will meet on Tuesday to approve inclusion of the new directors and discuss pending issues regarding the proposed Rs 1,400-crore IPO.

“The Centre recently cleared appointment of six new directors on our board. We are holding discussions relating to the IPO with our issue managers. The issue is expected to open in October, most preferably in the third week of October,” an OIL source told Business Line.

OIL proposed fresh issue of 10 per cent of the company’s paid up capital through IPO. An additional one per cent capital will be issued to the employees. HSBC, Morgan Stanley and Citibank are the lead managers to the issue.