State-run Oil India (OIL) today 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 PTI.
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.
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.