Oil India Ltd (OIL) IPO To Open On Sept 7th & Expected OIL IPO Listing Date On Sept 29th 2009

29 Aug

Posted by Shyam as IPO Watch

Looks like we are in a season of IPOs. Starting from Mahindra Holidays followed by Adani Power and next is NHPC on Sep 1st 2009. Well the story has just begun. The next big ticket IPO hitting the capital markets is OIL (Oil India Limited) IPO. There are some updates to the news posted on OIL IPO previously. Oil India Limited (OIL) which is the country’s second largest Govt based oil exploring company will hit the markets on Sept 7th, 2009.

Highlights of OIL India IPO :-

OIL IPO Offer Start Date :- Sept 07th 2009.
OIL IPO Close Date:- Sept 11th 2009.
Price Band of OIL IPO :- Rs 950-Rs 1050.
Expected OIL IPO Listing Date :- Sept 30th 2009.

Read the Draft Red Herring Prospectus(DRHP) of OIL IPO here.Check OIL IPO Allotment status here.

The officials from OIL have declared the price band recently and it has been fixed at Rs 950-Rs 1050 per equity share of Rs 10 each. OIL IPO will offer the public 2.64 crore equity shares of Rs each in the price band of Rs 950-Rs 1050. OIL produces some 3.5 million tonnes of oil every year. 11 % of the equity will be off loaded through the OIL IPO and Govt will divest 10% of its share in the company.

At the higher end of the price band OIL IPO Market capitalization will touch Rs 25,250 crores which will put OIL among the top 40 Indian listed companies and also the 10th largest PSU in terms of M-Cap. The company will rake in Rs 2,512 crores at lower price band and Rs 2,775 crores at the higher price band from the market in this IPO. Some more financial facts to add to this. OIL has a bank balance of Rs 6,500 crores and the company generates cash flow of Rs 2,500 annually.

For the period ending June 2009, OIL has announced a net profit of Rs 2,108 crores. And at this offer price of Rs 950-1050 the P/E ratio of the company will stand at 10.8 to 12 which make it even interesting. Unlike majority of the IPOs where the money raised is used in expansion and making the company operational, OIL is an exception. The company is already in operation and makes decent levels of profit margins in the current economic scenario.Check more details on OIL IPO here.

Update:- OIL India IPO Listing date has been decided on Sept 30th 2009.

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