Oil India zooms 8% in last 3 sessions; post OFS counter gains 11%

Reports suggest the company is raising overseas loan worth $400 mn

Shares of Oil India have zoomed 8% so far this week on reports that the state-owned oil explorer plans to raise around $400 million overseas loan in the current financial year.

On the BSE, stocks of the oil giant were trading strong at Rs 568, up 2.38%, on yesterday's close. This adds up to the run the counter witnessed in the last three trading sessions. With today's continuous upward move, the counter has already gained over 11% so far this month.

The company, a Navratna entity, had a successful offer for sale (OFS) transactions in the mid of March quarter of FY13. The government off-loaded 10% of its stake through this at a floor price of Rs 510.

Investors who participated in the OFS are already sitting on a double-digit gain. And with latest brokerages' reports with target of well above Rs 600 a share, the counter is witnessing buying.

In FY13, the company handsomely rewarded its investors with three subsequent dividends amounting to Rs 30 per share. It also had declared bonus at the end of FY12 in the ratio of 3:2.