The size of Indian Oil Corps GDR offering is expected to almost double to $600 million with the company now requiring more overseas funds to fund its petroleum imports. The original size of the offering was $ 300-350 million.
The company has already initiated talks to issue fresh shares. There is little cash flow for the corporation at present and there is a view that it would be better to raise capital at one go at this stage, sources said. Earlier, the flotation involved issuance of 1.9 crore shares by the government.
The exact number of fresh shares to be issued will be known in the next three to four days, industry sources said. Ministry sources confirmed that the issue would be floated soon. The target price is also being worked out, with the IOC stock being quoted at Rs 801 on the BSE yesterday.
Goldman Sachs and Credit Suisse First Boston are the global co-ordinators for the IOC flotation which is expected to hit the international markets in September-end/early October.
This could increase the pressures of key GDR issues being bunched closely, with the GAIL and MTNL GDRs slated for a launch in the last quarter 1997.
