The Oil India Ltd IPO is likely to open in October.
The tentative decision on IPO timing follows the recent approval by the Centre for appointing six new independent directors on board and conform to clause 49 of the listing agreement.
This has cleared the last hurdle before the company can go ahead with the IPO.
According to sources, the OIL board will meet on Tuesday to approve inclusion of the new directors and discuss pending issues regarding the proposed Rs 1,400-crore IPO.
It may be mentioned that the IPO was originally scheduled to hit the capital market in February-March this year. However, the opening was delayed due to non-availability of due approval for expansion of the board which was considered a pre-requisite.
“The Centre recently cleared appointment of six new directors on our board. We are holding discussions relating to the IPO with our issue managers. The issue is expected to open in October, most preferably in the third week of October,” an OIL source told Business Line.
On the uncertainties in the capital market and its impact on the proposed IPO, the source said the issue managers do not foresee any problem in going ahead with the issue.
“As on date we are decided to go ahead with the issue,” he added.
Issue details:
OIL proposed fresh issue of 10 per cent of the company’s paid up capital through IPO. An additional one per cent capital will be issued to the employees.
The issue will coincide with the proposed disinvestment of 10 per cent of OIL’s paid up capital by the Government in favour of three downstream PSU oil companies – Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL). The disinvestment will take place at a price discovered through the IPO.
Post disinvestmnent, IOC will pick up five per cent stake in OIL. BPCL and HPCL will get 2.5 per cent stake each.
HSBC, Morgan Stanley and Citibank are the lead managers to the issue, reports The Hindu Business Line.
Source: Moneycontrol.com
Wednesday, August 13, 2008
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