Oil India IPO Review

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.

NHPC IPO review

So the big IPO made way today and gover oversubscribed in an hour and 3.5 times in a day, What an IPO !

So what is NHPC IPO all about?
The issue price band is placed between Rs.30 and Rs.36.

Total shares of 1677374015 shares will be on offer in the IPO at a book value of Rs.15.78.

NHPC plans to raise an amount up to Rs.6048 crores through this IPO.

A bid has to be made for a minimum of 175 shares and in multiples of 175 there after. So 6300 for a lot.

About the NHPC company:

India's biggest hydroelectric power generator

NHPC had a net profit of Rs.1085.16 crores and reserves being at Rs.6039.67 crores in 2008.

It power producing capacity at present stands at 5175 Megawatts which will soon be expanding to an additional 4622 Megawatts.

Control Investments's verdict :
It has always seen that government IPO, leaves enough scope for prospective investors to make money and this can be expected from NHPC IPO as well .Its a a good buy.

My Verdict: I am planning to buy 700 shares worth 25200. I am not sure whether I will be I alloted any shares or not. But if I would I would sell on listing.