Oil India (OIL) is planning to go ahead with its initial share sale to the public despite the stock markets falling more than 29% from its peak in January, reports Business Standard.
The issue, earlier scheduled for February, is likely to be delayed by a few months. The company is awaiting government clearance. There were speculations that OIL`s share sale may be put off indefinitely as the government is not keen that the company enter a weak market.
The company has appointed JM Morgan Stanley, Citigroup and HSBC Securities as the book running lead managers to the issue. OIL had planned to offer 10% of its shares to the public in February to raise around Rs 20 billion.
In 2008-09, the company plans to invest over Rs 22 billion in exploration and production. It is targeting to produce 3.50 million ton of oil from its domestic fields in the current financial year. It produced 3.11 million ton in 2006-07. The government also plans to sell 10% of its equity in OIL to Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation to raise another Rs 20 billion.