Saturday, September 5, 2009

OIL INDIA IPO ANALYSIS


sir please give your view on oil india IPO-ask by satya ji from mail

1. Oil India is India’s 2nd largest national crude oil producer as measured by total oil and gas reserves and production.
2. Oil India is a Mini Ratna Category 1 company based on operational efficiency and financial strength
3. CRISIL has assigned a grade of "4/5" to the OIL PO. This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India
4. Oil India is a Debt free company with cash per share of Rs. 273 based on post issue equity
5. On the EV/BOE basis OIL is trading at 3.96x as compared to 5.04x for ONGC
6. Oil India share subsidy of government on LPG or DISEL. This is the most important negative factor of oil India.
7. The government sells petrol and kerosene at a discount to international prices to retail consumers. The subsidy is then shared by the government and oil companies. When oil prices sky-rocket, the burden of this subsidy becomes really high on oil companies. Oil India also shares this burden, and its profits can be adversely affected if oil prices skyrocket.

8. we think after NHPC IPO fail to give benefit of investors it will be important for market big players or speculators that they try to listed it with some premium because if this IPO also fail who can apply in coming government sectors IPO ?
9. so I think it give at least 10-15 percent listing gain for investors or may be 20 percent but remember point 6-7 of this analysis about subsidy Burdon and take some listing gain.

Click here to download full prospectus of oil India IPO


Key words:- can I invest oil india ipo recomandation should buy invest in oil india blog view oil india

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