State-owned Oil India Ltd (OIL) said on Monday that it has filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of up to 2,64,49,982 equity shares of Rs 10 each for cash at a price to be decided through 100% book-building.
The issue comprises a net issue to the public of up to 2,40,45,438 equity shares and a reservation of up to 24,04,544 equity shares for subscription by employees, a company statement said.
The issue will constitute 11% of the fully diluted post-issue paid-up capital of the company. The shares offered are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
JM Financial Consultants, Morgan Stanley India Company, Citigroup Global Markets India and HSBC Securities and Capital Markets are the book running lead managers to the issue.
The objects of the issue are to fund exploration and appraisal activities, development activities in producing fields, purchase of capital equipments and contracts for facilities, and diversification of existing business in downstream activities, the statement said.
OIL is India?s second largest oil and gas company as measured by total proved plus probable oil and natural gas reserves and production.
The company has been present in the India oil and gas exploration and production industry for nearly five decades and is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. The company also processes the produced natural gas to extract liquefied petroleum gas.