The Hindu Business Line : Oil India appoints lead managers for planned IPO

Kolkata, Sept. 11 Oil India Ltd (OIL) has appointed HSBC, JM Morgan Stanley and Citibank as lead managers of its proposed initial public offering (IPO).

The company has also approached the Petroleum Ministry for early appointment of independent directors as required under clause 49 of the listing agreement.

“We may need to appoint six independent directors to comply with the listing agreement. We have already taken steps in this direction and are hopeful to completing it latest by early November,” a senior company official told Business Line.

The company is expecting the issue to open in February.

The Cabinet Committee on Economic Affairs recently approved a proposal for fresh issue of 10 per cent of OIL’s paid-up capital through IPO.

Additionally, the company would issue one per cent of its capital to employees.

Besides, the Government would disinvest 10 per cent of OIL’s paid-up capital in favour of IOC, BPCL and HPCL. While IOC will pick up five per cent stake in OIL, BPCL and HPCL will get 2.5 per cent stake each in the upstream company.

The Centre currently holds 98.3 per cent stake in the company. The rest is held by the employees. “The price band to be discovered for the IPO would be applicable for the disinvestment too,” the official said.

While the IPO is expected to generate resources to the tune of Rs 1,430 crore for OIL, the Government may raise an identical sum through the disinvestment.

OIL-IOC joint venture

Meanwhile, OIL and IOC plan to incorporate a 50:50 joint venture for overseas E&P ventures in October.

The venture will be based in Mauritus and will have an initial capital of Rs 10 crore.

The name of the venture is yet to be decided.

“The boards of both the companies have already approved the proposal for setting up the venture. We have already short-listed a few names. We are hopeful of completing all formalities, including incorporation, by October,” an official said.

More Stories on : Outlook | IPOs | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page