24th August, 2009
Greetings from Pragmatic Investments!
We would like to inform you about the Public Issue of Oil India Ltd (OIL) which will open for subscription on September 07, 2009 and we would be glad to partner you in this investment opportunity.
The issue highlights of Oil India Ltd, as per the prospectus are given below:
- OIL is a ‘Mini Ratna’ public sector undertaking (PSU), promoted by Government of India and is under the administrative control of the Ministry of Petroleum and Natural Gas. At present, the government of India holds 98.13% equity in the company which would get reduced to 78.43% post IPOOIL was incorporated in 1959 and is a second largest and a premier Indian National Oil Company, engaged in the business of exploration, development and production and transportation of crude oil and natural gas and production of LPG.
- OIL has over 1 lakh sq km of Petroleum Exploratory License/Mining Lease areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and majority of gas production.
- The company also provides various E&P related services and holds 26% equity in Numaligarh Refinery
- Presently, OIL’s exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria andSudan.
- The object of the issue is to raise capital for exploration and appraisal activities, development activities in producing fields, purchase of capital equipments and contracts for facilities, diversification of existing business in downstream activities.
- In 2008-09, the company reported a net profit of Rs 21.6 billion on a turnover of Rs 72 billion. It posted an EPS of Rs 101 during the same period, while its book value per share stood at Rs 436. OIL’s return oncapital employed (RoCE) and return on equity (RoE) for the year stood at 35% and 25%, respectively.
- The issue has been rated by CRISIL Ltd as IPO grade 4 out of 5, indicating above average fundamentals.
The tentative details of the issue are as under:
|Number of Shares||Total issue size is of 2,64,49,982 equity shares of Rs. 10 each, out of which net issue to the public is 2,40,45,438 shares.|
|Net Issue Size||Net issue to the public is 2,40,45,438 shares amounting to Rs. 2645 Crs|
|Price Band||Rs. 1000 – 1100 per share|
|Offer opens on||September 07, 2009|
|Offer closes on||September 11, 2009|
|Multiples of||6 Shares|
|HNI Category||10% of the Net Issue to the public (24,04,544 Shares)|
|Book Running Lead Managers||JM Financial Consultants Pvt. Ltd., Morgan Stanley India Co. Pvt. Ltd., Citigroup Global Markets India Pvt. Ltd. & HSBC Securities & Capital Markets India Pvt. Ltd.|
|Registrars||Karvy Computershare Pvt. Ltd|
|Listing||BSE & NSE|
- Once the issue details are finalized we will release the exact financing scheme for subscription in this public issue.
- The Registration process can be initiated as it takes 7-8 working days for the completion of the account opening formalities.
- Should you need any clarification, please contact us at +91 – 922 369 7999
Business Associates – Karvy Stock Broking Ltd