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.

NHPC Refiles the DRHP with Sebi

National Hydroelectric Power Corporation(NHPC), has already filed prospectus but withdrew it because of some technical objections with sebi. So it has refiled the draft red herring prospectus with sebi. It plans to tap the capital market with an initial public offering (IPO) of 1676.04 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. NHPC IPO is likely to be the first from the public sector after the Left parties withdrew support to the UPA government.

“We have submitted the draft red herring prospectus with the Sebi today,” said S K Garg, Chairman and Managing Director, NHPC.

A Mini Ratna (Category I) company, NHPC has developed 13 hydroelectric power stations and the total installed capacity is currently 5,175MW.

Enam Financial Consultants, Kotak Mahindra Capital Company, SBI Capital Markets and Karvy Computer Share are helping them in the process

Of the total equity float, at least 60% of the issue shall be allocated on a proportionate basis to qualified institutional bidders (QIBs) including 5% of the QIB portion that would be especially reserved for mutual funds. Further, not less than 10% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price

MCX IPO

MCX (commodity trading) IPO which has got the highest rating by CRISIL, is expected to launch by August, in the mid of the volatile market conditions. MCX, which received the SEBI approval for IPO on May 15, has to tap the market before August 15, after which the SEBI approval will expire.

Companies has to proceed with the Issue before 90 days of sebi's approval, or else they have to re-file the offer documents. MCX will become the first commodity exchange trading to list in India.

The grade indicates that the fundamentals of the issue are strong. It is neither a trading recommendation, nor a comment on the future market price or its suitability, it said.

IPO of Barak Valley Cements Limited

The Initial Public Offering (IPO) of Barak Valley Cements Limited is scheduled from 29-Oct-2007 to 01-Nov-2007. The issue price range is Rs. 37/- to Rs 42/-. The minimum order quantity is 150 shares and the market lot is 150 shares (i.e., you can order only in multiples of 150 shares.)

This company is located in the Barak Valley region of Assam. Because of its location in the north eastern part of our country, it enjoys various benefits offered by the government for that region. Some of the benefits are 100% central excise duty exemption, 100% central sales tax exemption and 100% income tax exemption. For more complete details of the benefits it enjoys, check here.

This company has been awarded Certificate of Excellence from Institute of Economic Studies (IES), Delhi. But, after reading this, I am not very much impressed with that award. Anyway, wait for the recommendations to decide about this IPO.