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OIL files papers for public float

business Updated: Dec 17, 2007 22:05 IST
Deepak Joshi

Oil India Limited (OIL) has filed its draft red-herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 26,449,982 equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process. The issue will constitute 11 per cent of the fully diluted post-issue paid-up capital of the company.

The net issue to the public would be up to 24,045,438 equity shares. There is also a reservation of up to 2,404,544 equity shares for subscription by eligible employees.

The issue is expected to help the state-run company achieve the benefits of listing and to fund requirements for fiscal 2009 and 2010 towards exploration and appraisal activities, development activities in producing fields, purchasing capital equipment and contracts for facilities, and diversification of existing business in downstream activities.

OIL, which has been present in India's oil and gas exploration and production industry for nearly five decades, is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India.

It also processes the produced natural gas to extract liquefied petroleum gas. The company is also in the business of global exploration of crude oil and natural gas in Gabon, Iran, Libya and Nigeria and was recently awarded exploration blocks in Yemen as part of a consortium.

The company’s independent proved plus probable oil reserves, as well as a majority of its independent natural gas reserves, are located onshore in the upper Assam basin in Assam and Arunachal Pradesh. OIL also has independent natural gas reserves in the Bikaner-Nagaur basin in Rajasthan.