Turbulent market conditions have forced the Indian Oil Corporation (IOC) co-promoted oil EPC firm, IOT Infrastructure and Energy Services, to rejig the timing of its Rs 800 crore IPO. However, the company said it is confident of launching the issue before March.
The firm, which started as a dedicated player in oil tanking services in 1998 as an equal joint venture between IOC and German firm, Oil Tanking GmBH, is ready with all the required permissions, but is constrained because of the choppy market conditions, IOT Infrastructure President (Finance) Jatin Mavani said in Mumbai.
"We are ready from our side...but the market is very turbulent. It is very jittery, but we are confident that we will launch the IPO before March," Mavani said.
However, he made it clear that the company will not compromise on valuations in order to entice investors and launch the Initial Public Offer (IPO) early.
"We have waited for ten years and will not lower our valuation. We will wait for the market conditions to improve."
The company had filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI for the IPO in September last year which entails marginal divestment by its existing owners and issue of fresh shares. It was initially reported that the company will hit the market by January end.
Post IPO, IOC and the German firm's stake in the company will drop to 37.5% each, while the general public will hold the remaining 25%, in compliance with SEBI directives on shareholding.