The Oil India Limited (OIL) has decided to offer initial public offering to raise around Rs 1,474 crore (Rs 14.74 billion) for its expansion plans in its Golden Jubilee year.
OIL Chairman and Managing Director M K Pasrija said in Duliajan on Monday that in order to fund its ambitious growth plans in exploration and production activities, the OIL has a plan outlay of Rs 4,575 crore (Rs 45.75 billion) for two years, which is supposed to be met through internal resources and IPO.
Undaunted by the volatile Indian stock market as well as crash of three major IPOs, which included Reliance Power of the Anil Dhirubhai Ambani Group, the OIL will go ahead with the IPO to raise USD 378 million after March.
''We need not pull back as far as our offer is concerned, we have very strong fundamentals and nothing should come in the way,'' the CMD said.
The Red Herring Prospectus covers for an IPO of 2,64,49,982 equity shares of Rs 10 each at a price to be decided through the book-building process, which will constitute 11 per cent of the fully diluted post-issue paid-up capital of the company, supposed to be listed on the National Stock Exchange and Bombay Stock Exchange.
Basking in the glory of the Golden Jubilee celebrations, which commenced on Monday near Duliajan at Naharkatiya, where the first oil well of the Independent India was dug, the OIL is confident of doing well in the IPO.
The OIL, a public sector undertaking engaged in the hydrocarbon exploration business, has firmed up plans to increase its capital expenditure in exploration activities in NELP blocks as well as in its JV blocks abroad.
The company has made an outlay of Rs 2,230.67 crore (Rs 22.3 billion) for the year 2008-09 compared to Rs 1,705.68 crore (Rs 17.05 billion) last year. According to the CMD, the outlay includes expected expenditure in respect of overseas exploration projects and pipeline projects both in India and abroad.