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Monday, December 17, 2007

Oil India files DRHP with SEBI for IPO

Oil India, India’s second largest oil and gas company as measured by total proved plus probable oil and natural gas reserves and production (Source: Directorate General of Hydrocarbons), has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 26,449,982 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a net issue to the public of up to 24,045,438 equity shares and a reservation of up to 2,404,544 equity shares for subscription by eligible employees. The issue shall constitute 11% of the fully diluted post-issue paid-up capital of the company.

The company has been present in the India oil and gas exploration and production industry for nearly five decades. The company is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. The company also processes the produced natural gas to extract liquefied petroleum gas. Oil India Limited is present internationally through the exploration of crude oil and natural gas in Gabon, Iran, Libya and Nigeria and was recently awarded exploration blocks in Yemen as part of a consortium.

All of the Company’s independent proved plus probable oil reserves, as well as a majority of its independent natural gas reserves are located onshore in the Upper Assam basin in the states of Assam and Arunachal Pradesh. Additionally, the company also has independent natural gas reserves in the Bikaner-Nagaur basin in the state of Rajasthan.

The objects of the issue are to achieve the benefits of listing and to fund requirements for fiscal 2009 and fiscal 2010 towards (a) exploration and appraisal activities; (b) development activities in producing fields; (c) purchase of capital equipments and contracts for facilities; and d) diversification of their existing business in downstream activities.

The equity shares offered are proposed to be listed on the National Stock Exchange and Bombay Stock Exchange.

The book running lead managers to the issue are JM Financial Consultants Private Limited & Morgan Stanley India Company Private Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited.

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