Date:20/09/2008 URL: http://www.thehindu.com/2008/09/20/stories/2008092056291900.htm

Business

Oil India gearing up for IPO

Special Correspondent

Centre holds 98.13 % while the balance is held by employees

KOLKATA: Given the current market conditions, India’s second largest oil and gas company, Oil India will enter the market with its initial public offer (IPO) after consulting its parent ministry and the Union Finance Ministry, Chairman and Managing Director M. R. Pasricha said while replying to a query.

Talking to The Hindu after addressing a press conference here, he said the company had plans to enter the market by November-December, but now it would do so only in consultation with the government. “The company is strong on fundamentals but we will enter the market only when the government tells us to do so.”

“We got the Securities and Exchange Board of India (SEBI) nod on the issue recently and we are working towards launching the issue,” he said adding that the government held 98.13 per cent of the paid-up equity capital of the company with the balance being held by the employees. Through this issue and a pre-IPO offer to public sector oil companies, the stake is slated to come down to about 78 per cent.

While Indian Oil Corporation is set to take five per cent, two other oil companies — Hindustan Petroleum Corporation and Bharat Petroleum Corporation — will pick up 2.5 per cent each.

He said Oil India accounted for 10 per cent of India’s crude production and seven per cent of its gas production. It is present internationally, through exploration of crude oil in Iran, Libya, and Nigeria and was recently awarded exploration blocks in Yemen, as part of a consortium.