Foreign investors put in Rs 1,800 cr for OIL stake sale

Foreign investors lapped up as much 60 per cent of the 6 crore shares in Oil India (OIL) that were put on offer, pumping in about Rs 1,800 crore to buy equity in India's second biggest explorer.

"60 per cent of the OIL share allotment has been made to the FIIs and the remaining 40 per cent to MFs, banks, HNIs, insurance companies and retail," a senior official told PTI.

Besides, OIL was the first offer for sale (OFS) wherein retail investors too were alloted shares, the official added.

Unlike in the previous PSU stake sale, the Foreign Institutional Investors (FIIs) have shown keen interest in the OIL disinvestment and the highest bid came in at Rs 527 a share, a 3.33 per cent more than the floor or auction start price of Rs 510.

The government had last week sold 10 per cent stake in OIL, garnering over Rs 3,100 crore from the sale, a resounding success with the issue being lapped up by more than twice the number of investors originally targeted.

The OIL issue was fully subscribed even before the close of market hours. The issue got bids for 15.41 crore shares as against 6.01 crore on offer.

The median bidding price was, however, at Rs 517.99, and at this price the government would garner Rs 3,113.80 crore.

OIL scrip closed at Rs 534.60, up 1.72 per cent on BSE.

Sources said LIC, SBI MF, HDFC MF and other financial institutions participated in the OIL share sale offer as they are "very positive on oil and gas sector".

Bids for over 7.50 crore shares were with 100 per cent margin, meaning if the bidder decides to withdraw later they can do so. Bids that came in with zero per cent margin were over 7.91 crore shares, according to the NSE data.

... contd.

ALSO READ

DGCA scrutiny likely for airlines' levy on services

Deutsche Bank sees Sensex at 22,500 by Dec, further rate cuts

Air India to slash free baggage allowance, charge more

Kingfisher Airlines assets worth Rs 1,000 crore sold: SBI