Oil India, the second largest oil exploration company in India enters the Primary market with its Initial Public Offering (IPO) on September 7th. Oil India is mainly involved in exploration and production activities of Crude oil and Natural Gas. The operations are majorly in North East India and Rajasthan.
Price Range Rs. 950 To Rs. 1050.
Tick Size Re. 1/-
Market Lot 6 Equity Shares
Minimum Order Quantity 6 Equity Shares
Maximum Subscription Amount for Retail Investor Rs.100000
IPO Market Timings 10.00 a.m. to 5.00 p.m.
IPO Grading IPO GRADE 4
Rating Agency CRISIL
OIL is offering their shares at 11.7x its post equity earnings at upper price band which is in line with ONGC. On EV/BoE basis OIL is currently trading at 4.0x as compared to 5.0x for ONGC. This coupled with high reserve replacement ratio and aggressive development plans make OIL a good investment. Given the sizable acreage both in the domestic and international regions and given the reduced subsidy burden on account of changes in subsidy sharing mechanism further reaffirms growth prospects of the company. Therefore based on the growth prospects and reasonable valuations we recommend subscribing to the issue with long term investment objective.
Final Verdict of CI : Avoid it, buy on listing at 1000,For long term.
Price Range Rs. 950 To Rs. 1050.
Tick Size Re. 1/-
Market Lot 6 Equity Shares
Minimum Order Quantity 6 Equity Shares
Maximum Subscription Amount for Retail Investor Rs.100000
IPO Market Timings 10.00 a.m. to 5.00 p.m.
IPO Grading IPO GRADE 4
Rating Agency CRISIL
OIL is offering their shares at 11.7x its post equity earnings at upper price band which is in line with ONGC. On EV/BoE basis OIL is currently trading at 4.0x as compared to 5.0x for ONGC. This coupled with high reserve replacement ratio and aggressive development plans make OIL a good investment. Given the sizable acreage both in the domestic and international regions and given the reduced subsidy burden on account of changes in subsidy sharing mechanism further reaffirms growth prospects of the company. Therefore based on the growth prospects and reasonable valuations we recommend subscribing to the issue with long term investment objective.
Final Verdict of CI : Avoid it, buy on listing at 1000,For long term.
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