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OIL expects SEBI clearance for IPO by this week
State-run Oil India (OIL) on Monday said it expects to receive Sebi
clearance for its maiden public offering within this week or the next, a top
official told said here.

"After filing the DRHP last December, we have given a letter to Sebi
highlighting the recent developments. We expect to get its approval either
this week or the next week," OIL Chairman and Managing Dierector M R Pasrija
told the media.

The Government owns 98.13 per cent stake in OIL and the remaining is with
the employees and others. Post-issue, Government's stake would come down to
78.5 per cent.

The company will dilute 10 per cent stake to public through IPO, 10 per cent
again for oil marketing companies like IOC, HPCL and BPCL at IPO price.

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OIL intends to use the IPO proceeds to part-finnace its Rs 4,574 crore capex
plan for the next two finnacial years. The remaining would come from
internal accruals, he said.

OIL's plans to use the fund for exploeration & appraisal activities,
development activities in producing fields, purchase of capital equipment
and diversification of existing business in downstream activities.

The company will spend Rs 2,711 crore on exploration & appraisal activities,
Rs 873 crore on development activities in producing fields, Rs 958 crore on
equipment purchase and Rs 3.1 crore on diversification of downstream
activities.


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