The initial public offer of state-run Oil India today got subscribed over four times the shares on offer, with most of the bids coming in from qualified institutional buyers (QIBs).
The oil explorer?s IPO, which was launched three days ago, received bids for 10.62 crore shares against 2.64 crore on offer, as per the data available on the National Stock Exchange.
The portion reserved for qualified institutional buyers got subscribed 7.18 times today, whereas shares meant for the retail individual investors got subscribed 31 per cent.
The IPO, which is the second PSU stake sale after NHPC during the second term of Congress-led UPA government, would close tomorrow.
OIL, a ?Mini Ratna? PSU, expects to raise up to Rs 4,982 crore through the stake sale. The company would be listed on the bourses on September 29.
Under the twin offer for disinvestment in OIL, which produces 3.5 million tonnes of oil annually, the company will offer fresh equity of 2.64 crore shares or 11 per cent, while the government will put on offer 10 per cent of its stake in the company to state refiners.
Post-IPO and disinvestment, the government?s stake in the company will decrease to 78.50 per cent.
Rating agency Crisil has assigned a grade of four (out of five), indicating above average fundamentals, to the issue.