Oil India Ltd. IPO: Key Details

We are the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production (Source: DGH). We are primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. We also process our produced natural gas to extract LPG. We are present internationally through the exploration of crude oil and natural gas in Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen. We primarily conduct our activities with respect to our domestic producing blocks and exploration activities in our nomination blocks independently. We also conduct exploration activity, both in India and overseas, through joint venture arrangements and PSCs with other oil companies. We were incorporated as a private limited company in 1959. We have been present in the Indian oil and gas exploration and production industry for over five decades and count among our achievements the creation, operation and maintenance of a fully automated crude oil pipeline. As of March 31, 2009, all of our estimated independent proved plus probable oil reserves, as well as 93.66% of our estimated independent natural gas reserves, are located onshore in the Upper Assam basin in the states of Assam and Arunachal Pradesh. Additionally, we have independent natural gas reserves in the Jaisalmer basin in the state of Rajasthan. As of March 31, 2009, our unaudited estimated independent proved plus probable crude oil reserves were approximately 575.40 million barrels (which include certain reserves attributable to condensate from non-associated gas reservoirs) and our independent proved plus probable natural gas reserves were approximately 63.41 billion cubic meters (which include certain reserves attributable to fuel gas consumption). In addition to our independent reserves, we also have a 40% participating interest in crude oil reserves in the Kharsang fields in the Assam-Arakan basin in the state of Arunachal Pradesh. For fiscal 2009, our gross production amounted to approximately 24.95 million barrels of oil and approximately 2.27 billion cubic meters of natural gas, representing an average daily production of approximately 68,358 barrels of oil and 6.22 million cubic meters of natural gas. Our production amounted to approximately 10.41% and 6.91% of India's total production of crude oil and natural gas, respectively, for fiscal 2009 (Source: PPAC). For the three months ended June 30, 2009, our production amounted approximately 6.34 million barrels of oil and approximately 0.60 billion cubic meters of natural gas, representing an average daily production of approximately 69,619 barrels of oil and approximately 6.64 million cubic meters of natural gas. We own and operate, as a common carrier for us, ONGC and BRPL, a 1,157 kilometer cross-country crude oil pipeline. The pipeline has the capacity to transport over 44 million barrels of crude oil annually. We transported approximately 45 million barrels of crude oil in fiscal 2009 to four public sector refineries in the North East region of India located in Digboi, Numaligarh, Guwahati and Bongaigaon. We own ten crude oil pumping stations and 17 repeater stations, spread across the states of Assam, West Bengal and Bihar. We also own and operate a 660 kilometer petroleum product pipeline connecting NRL to Siliguri in West Bengal, which was commissioned in August 2008. We have interests in downstream activities through a 26% equity stake in NRL, a 10% equity stake in BCPL and a 23% equity stake in DNP Limited. We also hold a 10% equity stake in a 741 kilometer pipeline construction project in Sudan that was completed in 2005. We have the ability to provide various exploration and production-related services to the oil and gas industry, both domestically and internationally, including pipeline construction, pipeline consultancy services, drilling and well work-over services, research and development services and logging services. As a public sector undertaking, we have been accorded "Mini Ratna Category I" status since 1997 by the GoI for our operational efficiency and financial strength. In recognition of our performance and our consistent achievement of targets negotiated under the memoranda of understanding that we enter into with the GoI on an annual basis, the GoI has rated our performance as "Excellent" for fiscal 2005 and 2006 and "Very Good" for fiscal 2007 and fiscal 2008. We were also ranked as the best public sector undertaking by the Department of Public Enterprises in its annual survey for fiscal 2006. We had revenues of Rs. 60,099.89 million, Rs. 67,954.63 million and Rs. 81,378.77 million, for fiscal 2007, 2008 and 2009, respectively. Our profit after tax as restated was Rs. 15,403.91 million, Rs. 17,795.97 million and Rs. 22,308.50 million for fiscal 2007, 2008 and 2009, respectively. For the three months ended June 30, 2009, our revenues were Rs. 21,381.46 million and our profit after tax as restated was Rs. 7,396.92 million.

Oil India Ltd. IPO Details

IPO Date September 07, 2009 to September 10, 2009
Listing Date September 30 2009
Face Value ₹10 per share
Price Band ₹950 to ₹1050 per share
Lot Size 6 Shares
Total Issue Size 26449982 Shares
Issue Type Book building
Listing At BSE  NSE 
Share holding pre issue 210000000
Share holding post issue 188599560

Oil India Ltd. IPO Promoter Holding

The promoter of the company is President of India,

Share Holding Pre Issue 98.13%
Share Holding Post Issue 78.43%

Oil India Ltd. IPO Objectives

The objects of the Issue are to achieve the benefits of listing and to fund requirements for fiscal 2009 and fiscal 2010 towards (a) exploration and appraisal activities; (b) development activities in producing fields; (c) purchase of capital equipments and contracts for facilities; and d) diversification of our existing business in downstream activities (the ‘‘Objects’’). Our Company intends to utilize the proceeds of the Issue, after deducting underwriting and management fees, IPO grading fees, selling commission and other expenses associated with the Issue (the “Issue Expenses”) for the Objects (the ‘‘Net Proceeds’’). Our funding requirements for the fiscal 2009 and fiscal 2010 are based on estimates prepared by our management. The main object clause of our Memorandum of Association and objects incidental to the main objects enable us to undertake our existing activities and the activities for which funds are being raised by us through this Issue. The fund requirement and intended use of Net Proceeds have not been appraised by any bank or financial institution. In view of the inherent uncertainties relating to the oil and gas exploration process and the competitive and dynamic nature of the exploration and production industry, we may have to revise our expenditure, fund requirements and estimates of the completion dates. Moreover, these funding requirements are based on our existing estimates and the actual expenditure may vary. Our funding requirements are also dependent on a number of factors which may not be in the control of our management, including variations in the cost structure, changes in estimates, exchange rate fluctuations and external factors. Any such changes may result in rescheduling and revising the planned expenditure and funding requirements, at the discretion of our management.

Oil India Ltd. IPO Prospectus

Oil India Ltd. Lead Managers

  • JM Financial Consultants Pvt Ltd
  • Morgan Stanley India Co Pvt Ltd
  • Citigroup Global Capital Markets India Pvt Ltd
  • HSBC Securities & Capital Markets (India) Pvt Ltd

Oil India Ltd. IPO Contact Information

  • S K Krishna
  • Phone: 91-0120-2488307
  • Email: investors@oilindia.in

Oil India Ltd. IPO Registrar

  • Name: K FIN Technologies Ltd.-(Karvy Fintech Pvt Ltd.)
  • Phone: +040-23312454
  • Email: einward.ris@kfintech.com