The government on Monday fixed the issue price of the initial public offer (IPO) of state-run explorer Oil India at Rs 1,050 per share, raising a cumulative Rs 4,982 crore.

The IPO of 11% fresh equity shares would fetch Rs 4,982 crore at the higher end of the Rs 950-1,050 price band. Further, the government would sell its 10% stake to state refiners at the issue price for Rs 2,205 crore. “The company would be listed on the bourses on September 30,” Oil India Chairman N M Borah told reporters here.

About 99% of the issue was subscribed at the higher end of the price band, official sources said.

The IPO of OIL, which ended on September 10, got subscribed 30.81 times the shares on offer.

The state-run firm received overwhelming response from institutional investors who subscribed about 54 times of the portion reserved for them. Non-institutional and retail investors bid for 9.77 times and 1.14 times respectively of the shares on offer.

Under the twin offer for disinvestment, the Miniratna PSU, which produces 3.5 million tonne of oil annually, will offer fresh equity of 2.64 crore shares or 11% while the government will put on offer 10% of its stake in the company to state refiners. Of the 10% stake, IOC will get about 5%, while HPCL and BPCL would take about 2.5% each.

Post-IPO and disinvestment, the government’s stake in the company will decrease to 78.50% from the present 98.13%. The IPO proceeds would be used to fund the capex requirement of Rs 2,300 crore for 2009-10 and Rs 2,400 crore for 2010-11, sources said.