Oil India (OIL), India’s second largest producer of crude oil, could raise debt to fund its investment plans worth Rs 4,575 crore in India and overseas, if the volatile equity market derailed its IPO plans.
On September 11, the company received permission from the Securities and Exchange Board of India (Sebi) for an IPO to be floated within 90 days. “We are hopeful of going to the market, and are keeping a close watch on the situation,” said T K Ananth Kumar, director (finance), OIL. “We are keen on getting the company listed on the bourses as it helps with our overseas plans,” he added.
In case the lapse of the 90-day period, OIL would not be required to file a separate draft red herring prospectus, Kumar clarified. OIL planned to issue 2.64 crore shares through the public offering besides making a pre-IPO sale of 10 per cent equity that will go to Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC).
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