Oil India IPO price band set at Rs 950-Rs 1050 per share

IPO opens for bidding on 7 September 2009

The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 4,982 crore. The IPO will open for bidding on 7 September 2009 and close on 11 September 2009. OIL, which produces 3.5 million tonnes of oil annually, will be listed on the bourses on 29 September 2009.

OIL will offer fresh equity of 2.64 crore shares or 11%, while the government will put on offer 10% of its stake in the company to state-run refiners. IOC will get about five per cent HPCL and BPCL would take about 2.5% each.

The IPO will help mop up Rs 4,507 crore at the floor price and Rs 4,982 crore at the ceiling rate. Government would earn Rs 1,995-Rs 2,205 and the company would get Rs 2,512 to Rs 2,777 at the lower and upper end of the band, respectively.

Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13% to 78.5%.