EGoM fixes issue price of Oil India IPO at Rs 1,050 per share

The empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee on Monday fixed the issue price for the Oil India (OIL) initial public offer (IPO) at Rs 1,050 per share. The issue, which closed on September 10, was subscribed 31 times.

Oil India is the second PSU to have tapped the primary market after the Manmohan Singh government took reins for the second time in Delhi.

The qualified institutional buyer portion of the IPO was subscribed 53.8 times, while the high net worth individual (HNI) segment got a subscription of 10 times. On the other hand, the retail portion received a subdued response, with the subscription estimated at just 1.14 times.

The exploration major had postponed its IPO last year in the wake of adverse market conditions. It is the second public sector company to launch a public offer in recent times, NHPC being the first.

OIL, has charted out plans for investment around Rs 2,335 crore during the fiscal. The company is hoping to raise around Rs 2,500 crore through the IPO to bridge the funding need for its various exploration and production activities. From this sum, it will pool around Rs 1,430 crore in exploration and production and Rs 495 crore towards revamping its ageing fields.

The shares of Oil India will be listed on the stock exchanges on September 30, 2009.