Notwithstanding the shelving of the three high profile IPOs of EmaarMGF, Wockhardt Hospital and SVEC Constructions due to weak investor response, the government has ruled out any possibility for change in the IPO plans of Oil India Limited (OIL) on account of the ongoing stock market volatility. The IPO, estimated to raise up to Rs 1,500 crore, is likely to hit the capital market next month.
?OIL is a solid and stable company. The forthcoming IPO of OIL will hit the market as per the plans. We don?t see any change in IPO plans,? petroleum secretary M S Srinivasan said on the sidelines of the Ficci?s 80th AGM on Friday.
In addition to the IPOs already shelved, there is news of some of the other IPOs being deferred due to turbulent market conditions. Earlier this week, power minister Sushilkumar Shinde had also said that he was concerned about the market conditions and would discuss the issues related to the upcoming IPO of REC with the management. The company?s top officials have so far been expressing their confidence about the success of the IPO, which is scheduled to open on February 19.
OIl had filed its draft prospectus with market regulator Sebi for an initial public offering of up to 2.64 crore equity shares to raise up to Rs 1,500 crore. The issue would constitute 11% of the fully diluted post-issue paid-up capital of the company.