Oil India IPO

The Oil India IPO is expected to be launched in February 2008 and the company would utilize the funds to expand its exploration and production activities.

Oil India IPO - At a Glance

Oil India IPO is expected to be launched in the month of February 2008. The Oil India Limited estimates a fund raising of up to Rs. 2,000 crores by offering equity shares to the public. Oil India Limited is engaged in the commercial activity of crude natural gas and oil exploration, production, and transportation. The yearly production of crude oil is around 25 million barrels and 6.6 million cubic meters of gas are produced everyday (2007).

Oil India Limited - Overview

The company has already filed the red herring prospectus with the Securities Exchange Board of India (SEBI) and they are waiting for the clearance from the SEBI. It is expected to be one of the biggest IPOs in the Indian Stock Market. Presently the Central Government holds around 98 % of the equity of Oil India Ltd, and the company plans to offer 10 % of the stake to the public. The main objective of the Oil India IPO is to utilize the proceeds in expanding the exploration and production operations of the company in the next five years.

Oil India IPO - Acquisition plans

With the IPO of Oil India Limited, the company plans the acquisition of the small and medium scaled exploration and production units in other countries. In collaboration with the Indian Oil Corporation, the Oil India Limited has plans of expansion on a global basis, as there are huge scopes of development and growth.

The joint venture is trying to acquire small and medium sized oil-producing companies in West Asia, Africa, Latin America and mainland Asia. The company is planning to invest Rs 15,000 crores for improvements in exploration and production of crude oil and natural gas in the next five years. The company would also invest Rs. 2000 crores for the development the refining techniques. The company plans of engaging in operations with the Bhatinda or Visakhapatnam refinery of the Hindustan Petroleum Corporation Ltd (HPCL).