It had come out with an initial public offering (IPO) of 264.5 lakh equity shares of face value Rs 10 each and raised over Rs 2,777 crore. The issue saw the highest ever subscription in the year 2009 and was oversubscribed 30.82 times.
Experts are predicting Rs. 35-40 premium over the issue price of Rs. 1050.00
What experts says:
SP Tulsian: It is likely to slip below issue price. "One can consider buying the stock below Rs 1,000 on the day of listing. In the near term, the stock may stabilise around Rs 900-950 per share," he added.
Manish Bhatt said,"The stock looks good for the long term so one who has a long term vision better stay invested."
Avinash Gorakshakar said, in the longer term the stock had the potential to touch Rs 1300-1400 levels based on FY11 earnings. However, he said, "If the opening price is below Rs 1100 then it can be a good value for long term investment. The stock will stabilised around Rs 1100-1150 in the near term. One should capitalise by remaining invested in the IPO as the short term gains may not be large but longer term prospects look good.The stock looks strong with long term perspective considering the company's strong financial track record and increasing asset base."
Dipan Mehta, Member, BSE/NSE said, the listing would be more or less flat, 3-5% move from its issue price. "What we have seen with the initial public offerings (IPO) which have got listed in this calendar year - more or less they will have one-two days of fantastic volume and maybe flipping of the stocks which the investors have bought during the IPO and then gather into kind of a range. So nothing much to look forward to as Oil India is concerned," he added.
