The Hindu : Business : OIL plans to raise Rs. 1,500 crore

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Tuesday, Mar 06, 2007
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OIL plans to raise Rs. 1,500 crore

Special Correspondent

Awaits cabinet nod for IPO

NEW DELHI: Oil India Limited (OIL) plans to raise Rs. 1,500 crore through an Initial Public Offering of equity shares by October.

"We have sent a proposal to the Government for a 10 per cent float. Whether it is through the disinvestment route or through equity expansion, it is for the Government to decide,'' OIL Director (Finance), T. K. Ananath Kumar, told newsmen on the sidelines of a conference organised by Petrofed to discuss Budget 2007-08.

The Union Government now owns about 98 per cent equity stake in the unlisted OIL. Previously, the Government combined disinvestment of its shareholding with public floats in companies such as NTPC.

"We hope to get Cabinet approval for our public offering by this month or by next month at the latest. The issue would come within six months of that and could raise around Rs. 1,500 crore,'' he said.

Oil India, whose operations are mainly concentrated in the northeast, is looking at acquisition of small to medium sized exploration and production companies overseas.

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