Oil India IPO subscribed 31 times

The initial public offer (IPO) of Oil India Ltd was subscribed nearly 31 times on account of a strong response from institutional investors. It closed today, after opening on Monday.

The company’s IPO, which opened on September 7, closed today. Along with the issue of 26.45 million shares, the government is looking to sell a 10 per cent stake to three state-owned oil refining-cum-marketing companies, Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.

The IPO was priced in a band of Rs 950-1,050 per share. At the upper end, the company will mop Rs 2,250 crore.

OIL had been planning to list for a while. It postponed its IPO last year in the wake of adverse market conditions. It is the second public sector player to recently launch a public offer, NHPC being the first.

Against an issue price of Rs 36 a share, NHPC closed at Rs 34 on the Bombay Stock Exchange. Similarly, shares of Adani Power, the other big IPO this year, closed at Rs 102.45, against an issue price of Rs 100.

While the overall response to the Oil India IPO has been strong, market players were worried about the poor response from retail investors, with the subscription estimated at just 1.14 times. The market players are also watching how the Oil India shares do post-listing.

“The qualified institutional buyer portion was subscribed 53.8 times, while the high net worth individual segment got a subscription of 10 times,” an investment banking source said. The government holds 98.13 per cent in Oil India. Post-IPO and the stake sale, its shareholding would fall to 78.43 per cent.

JM Financial Consultants, Morgan Stanley, Citigroup Global Markets India and HSBC Securities & Capital Markets are the lead managers to Oil India’s IPO.