Equity Market Pundit

Robust demand for Oil India's IPO also boosted hopes the government will look to sell more stakes in state firms as it looks to raise funds and cut a widening budget deficit.

The 26.45 million shares on offer priced at Rs1,050 a share, the top of a price range that started at Rs950. The shares account for 11% of the enlarged share capital. In addition to the IPO, the company is selling a further 10% at the IPO price to three state-run refiners. Following the two transactions, the government's stake will decrease from 98.1% to 78.4%.

A Quote from Reuters says "Even if the overall market is weak, we could see a strong listing. We think the shares could see a premium of 20 to 25 percent on the listing day."

Oil India, which is primarily into exploration, development, production and transportation of crude oil and natural gas onshore in India mostly in north-east, is also exploring crude oil and natural gas in Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen.


Oil India IPO final Subscription Numbers

Total Issue Size 26449982
Total Bids Received 815215116
Total Bids Received at Cut-off Price 11777586
No. of times issue is subscribed 30.82

Bid Details

Qualified Institutional Buyers (QIBs) 14427263 776654784 53.8324
Non Institutional Investors 2404544 25192308 10.4770
Retail Individual Investors (RIIs) 7213631 12726060 1.7642
Employee Reservation 2404544 641964 0.2670

Oil India IPO Allotment status can be seen at
http://mis.karvycomputershare.com/ipo/