Oil India IPO subscribed 30.81 times

Oil India IPO subscribed 30.81 times The initial public offer of Oil India Limited, a Mini-Ratna Category-I public sector undertaking company, has finally subscribed over 30.81 times on the final day of closing today.

The oil explorer's IPO received bids for 81.50 crore shares against 2.64 crore on offer. The issue received 1.15 crore bids at cut-off-price.

According to an official communiqué, the net proceeds from the issue will be utilized to fund capex requirement for 2009-10 and 2010-11, for which it has planned expenditure of Rs 2300 crore and Rs 2400-crore respectively.

Apart from this, the company will also expend the capital to purchase equipment, fund a 650-km crude pipeline in the north- east and in its city gas distribution venture with Bharat Petroleum Corporation (BPCL).

The issue has been graded by CRISIL Limited and has been assigned a grade of 4/5.