Oil India listing on Sep 30, priced at 1050

The government on Monday fixed the issue price of the initial public offer (IPO) of state-run explorer Oil India at Rs 1,050 per
share, raising a cumulative Rs 4,982 crore.

The IPO of 11 per cent fresh equity shares would fetch Rs 4,982 crore at the higher end of the Rs 950-1,050 price band. Further, the government would sell its 10 per cent stake to state refiners at the issue price for Rs 2,205 crore.

"The company would be listed on the bourses on September 30," Oil India Chairman N M Borah told reporters here.

About 99 per cent of the issue was subscribed at the higher end of the price band, official sources said.

The IPO of OIL, which ended on September 10, got subscribed 30.81 times the shares on offer.

The state-run firm received overwhelming response from institutional investors who subscribed about 54 times of the portion reserved for them. Non-institutional and retail investors bid for 9.77 times and 1.14 times respectively of the shares on offer.

Under the twin offer for disinvestment, the Mini Ratna PSU, which produces 3.5 million tonnes of oil annually, will offer fresh equity of 2.64 crore shares or 11 per cent, while the government will put on offer 10 per cent of its stake in the company to state refiners.

via BL