State-run Oil India Ltd is likely to file papers with market regulator SEBI next month for an initial public offering (IPO) of 2.64 crore shares that may hit the market in first half of November.
"We have fully complied with SEBI regulations on independent directors on the company board and will by next month file a revised Draft Red Herring Prospectus," a company official said. The revised DRHP would contain information updated till June 30, 2008.
The 12-member OIL board now has six independent directors, one government director and five functional directors. The appointment of independent directors on OIL board had been holding up the IPO since early 2008.
"We hope the market conditions will improve in the next couple of months and we are in discussions with our bankers on the exact timing of the IPO. Most likely it will ha ppen in the first half of November," he said.
Government currently holds 98 per cent stake in Oil India, which produces close to four million tons of crude oil a year. Along with the IPO of expanded equity base, government will sell 10 per cent of its holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.
The pricing of this sale would be at the IPO price, the official said, adding the placement would happen around the same time in November. Due to turbulent market conditions, several IPOs were shelved earlier, including those by realty giant Emaar MGF, Wockhardt Hospital and SVEC Constructions.
"We have fully complied with SEBI regulations on independent directors on the company board and will by next month file a revised Draft Red Herring Prospectus," a company official said. The revised DRHP would contain information updated till June 30, 2008.
The 12-member OIL board now has six independent directors, one government director and five functional directors. The appointment of independent directors on OIL board had been holding up the IPO since early 2008.
"We hope the market conditions will improve in the next couple of months and we are in discussions with our bankers on the exact timing of the IPO. Most likely it will ha ppen in the first half of November," he said.
Government currently holds 98 per cent stake in Oil India, which produces close to four million tons of crude oil a year. Along with the IPO of expanded equity base, government will sell 10 per cent of its holdings in OIL to Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum.
The pricing of this sale would be at the IPO price, the official said, adding the placement would happen around the same time in November. Due to turbulent market conditions, several IPOs were shelved earlier, including those by realty giant Emaar MGF, Wockhardt Hospital and SVEC Constructions.
Source: ET
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