Oil india ipo

#1
Oil india Ltd is entering in the capital markets with an initial public offering, IPO of 2,64,49,982 Equity Shares for cash, at a premium to be decided through a 100% Book Built Issue.

The issue opens on September 7, 2009, and closes for subscription on September 11, 2009

price band may be announced by 25th, expected around 1000 to 1100 depending on market condition and ONGC market price
 

columbus

Well-Known Member
#2
Oil india Ltd is entering in the capital markets with an initial public offering, IPO of 2,64,49,982 Equity Shares for cash, at a premium to be decided through a 100% Book Built Issue.

The issue opens on September 7, 2009, and closes for subscription on September 11, 2009

price band may be announced by 25th, expected around 1000 to 1100 depending on market condition and ONGC market price
I read somewhere that it will be around ~800.Even at ~800 it is highly
priced.Moreover OIL is not comparable to ONGC.
 
#3
news item published in Economic Times
http://economictimes.indiatimes.com...-Rs-1000-1100-a-share/articleshow/4877167.cms


"Oil India Ltd, the second state-run firm to hit the market with an offering of equity shares this year, may price its IPO that opens on
September 7 at Rs 1,000-1,100 a share.

OIL is looking at pricing its initial public offering (IPO) at closer to the prevailing share price of Oil and Natural Gas Corp (ONGC), a source close to the development said.

ONGC, the nation's largest explorer, was trading at Rs 1,167 on the Bombay Stock Exchange at 1400 hrs on Monday.

OIL, the source said, believes its earnings per share (EPS) and book value are better than ONGC and so it is looking at pricing the issue in the range Rs 1,000-1,100.

The price band will, however, be fixed by a Group of Ministers in the last week of August. "
 
#8
Is this official or media speculation? I thought the price band would be declared on 25th August.
This is according to economictimes.

http://economictimes.indiatimes.com...-band-at-Rs-1200-1450/articleshow/4904678.cms

"The government plans to fix the price band of Oil Indias proposed initial public offer at Rs 1,200-1,450 per share, substantially
higher than the market expectations, as it looks to replicate the success of the NHPC issue that was oversubscribed 24 times."
 
#9
Comparison between ONGC and OIL to arrive at a fair Market Price for OIL

OIL

EPS on current capital Rs. 101/-
EPS on Enhcanced Capital after IPO Rs. 45/-

ONGC

Current EPS Rs. 64.44
PE : RS. 18/-

So fair value of OIL as compared to ONGC should be

45 X 18 = Rs. 810
 

magnet

Active Member
#10
Was watching Zee business

Heard from one of their analyst RAjesh tambe to stay away from OIL stocks....its heavily over priced......better to invest in Cairn India....as it may touch even 1k this year.....

Do u guys agree?
 

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