OIL, which produces 3.5-million tonnes of oil annually, will offer 2.64-crore equity shares to the public through the IPO.
An 11 per cent fresh equity will be sold through the issue while the Government would divest 10 per cent of its stake at the IPO price.
Post-IPO and disinvestment, the Government's stake in the company will drop from 98.13 per cent to 78.5 per cent.
Proceeds from the issue would be used to fund capex requirement for 2009-10 and 2010-11 when it has planned Rs 2,300-crore and Rs 2,400-crore expenditure, respectively.
"We have laid down a capex of around Rs 4,500 crore for exploration, development, production and transportation of crude oil over the next two years," OIL Director, Finance, T K Ananth Kumar, told reporters here today.
Besides, 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 Corp (BPCL).
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