Adani Power IPO and NHPC IPO Disappointed investors. I also suggested for subscribing in NHPC IPO and expected to be listed above 40 Rs but when it did not remain their for long enough I also sold it off but then that does not mean its end of IPOs.

Oil India Limited ( OIL ) IPO opens on September 7^th and closes on September 11^th 2009 and the price band for the IPO is between Rs. 950 and Rs. 1,050.

As you may have already seen it in the advertisements on TV that Oil India is the country’s second largest OIL explorer and producer and is engaged in exploration, development, production and transportation of crude oil and natural gas onshore in India.

This IPO was initially planned in November 2008 but the market condition delayed it till now and after the overwhelming response of NHPC IPO subscription, OIL India IPO will also open for subscription. After the listing of NHPC it does not look very positive for OIL India currently.

Positives

It has an EPS for 2009 close to 100 Rs and so it would be priced closed to 10 times where as ONGC is trading at 15 times its 2009 earnings of 75 Rs.

Negatives

• The movement of Crude in the world would effect OIL India adversely because it would also be taking the subsidiary like ONGC.
• It has OIL Fields which are almost running out of OIL and so may be it would be effected by low production in the coming years.

Final Thoughts

It would be a good way to make some small money but it is not my favorites when it comes to investing in OIL India IPO

What next?