OIL plans investment spread of Rs 4,550 cr

Oil India (OIL) has planned an investment of more than Rs 4,550 crore for the next 18 months in exploration and other expansion activities, company officials said today.

The company plans to spend around Rs 2,827.97 crore in connection with its exploratory and appraisal activities, including 2D seismic data and 3D seismic data acquisition, processing and interpretation and exploratory drilling, they said.

It proposed to invest Rs 1,045.59 crore for development activities to accelerate exploration and development in producing fields, they said.

For the purchase of capital equipment and setting up facilities, it has earmarked an expenditure of Rs 686.28 crore.

These investments would be made by March 2011, they added.

Part of funds required would be raised through an initial public offering (IPO), which opens on September 7 and closes on September 10.

The company has fixed a price band between Rs 950 and Rs 1,050 per share and hopes to raise anywhere between Rs 2,513 crore and Rs 2,777 crore.

"The issue will constitute 11 per cent of the fully diluted post-issue capital of the company," OIL's GM (HR and BD), N K Bharau, said.