Indian Oil Corp Ltd (IOC) OFS on Monday 24th Aug 2015

Published on Friday, August 21, 2015 by Dilip Davda | Modified on Friday, November 1, 2019

While Dredging OFS got overwhelming response in dull market with over 2 times subscription in non-retail and over 11.6 times in retail, Govt of India has now planned OFS for IOC that will take place on Monday i.e.24.08.15.

For Dredging the clearing price for non-retail is fixed at Rs. 382, and for retail Rs. 393.10. Last closing price of Dredging as on Friday eve was Rs. 381.00

IOC OFS Detail

Company Name	Indian Oil Corporation Limited
Symbol	IOC
Series - Non Retail	IS
Series - Retail	Rs (Bid value (or = Rs 2 lacs)
Issue Size	24,27,95,248 equity shares
Discount to Retail investor bids	5% for Rs series
Bidding at cut-off - Rs series	Cut-off available - Default option on order entry screen
Maximum Bid Quantity	4,93,72,950 equity shares
ISIN	INE242A01010
Date of offer	24-Aug-15
Floor Price	Rs. 387
Market Lot	1 Equity Share
Tick Size	Rs 0.05
OFS Bidding Time	09:15 AM to 14:30 PM

Now for IOC (Indian Oil Corp Ltd), the OFS is for 10% stake dilution that includes 48559050 equity shares for retail investors and 194236198 for non-retail investors (Total 242795248 shares of Rs. 10 face value ). Offer will open at 9.15 AM and will close at 15.30 Hrs. Lot size will be 1 share and in multiple of it with a tick price of Rs. 0.05. The scrip closed on Friday at 394.45. Allotment will be made on price priority basis. Retail investors will get 5% discount on cut off price. Seller promoter to this offer is The President of India acting through and representated by the Ministry of Petroleum and Natural Gas, Government of India (Promoter).

Selling members are 1) Citigroup Global Markets India Private Limited 2) Deutsche Equities India Pvt Limited 3) Nomura Financial Advisory and Securities (India) Private Limited 4) JM Financial Institutional Securities Limited 5) Kotak Securities Limited.

Floor price for this offer will be announced before 5 pm of 22.08.15. This offer is likely to fetch Rs. 9460 crore for the Govt. of India.

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

21 Comments

21. D.K.Periwal

| Link|August 28, 2015 6:44:07 PMReply

I have applied shares at cut off price and my bank account is debited @ Rs.389.75/Share. How it is possible ? Price for retail investors should be 387 less 5% discount i.e 367.65. Please clarify if some one has clear idea regarding the pricing.

20. Uchit Patel

| Link|August 24, 2015 4:11:53 PMReply

It looks like retail portion is not fully subscribed. Everyone will get 100% allotment on their bidding price. I told everybody it is very huge size OFS. Everyone should apply on floor price. It is almost impossible to subscribe full in retail section. Even Coal India was not fully subscribe though market condition was very good at that time.

19. sridhar

| Link|August 24, 2015 3:38:25 PMReply

Cancelled my order after the huge fall. Have to wait and see if my decision was correct!!

18. Kabir

| Link|August 24, 2015 1:25:03 PMReply

Why are Non Retail people bidding for this issue, they can easily get shares at much lower cost in CMP, they are not eligible for 5% retail discount as well..

17. Stock Investor

| Link|August 24, 2015 12:53:59 PMReply

Apply @387

16. Pankaj sharma

| Link|August 24, 2015 12:39:54 PMReply

Should I apply IOC OFS @387 or at price after calculating discount i.e., 367.65

15. Uchit Patel

| Link|August 24, 2015 12:24:10 PMReply

Apply on floor price. Don''t take any risk. It is very huge OFS. Everyone get allotment on floor price as COAL INDIA.

14. Veeral

| Link|August 24, 2015 11:51:12 AMReply

I read in the IOC OFS document that, if the OFS is not fully subscribed, and if people bid in the 5% discount price range, they could get allotment. Which means:
Floor Price = 387
Discount: 5%
Discount Price: 367.65
If you bid at 367.65 and if the OFS is not fully subscribed, you can get an allotment at 367.65.

To be on the safer side, if one is absolutely bullish on IOC, he/she can apply for a small quantity at 367.65!

13. Ghanshyam

| Link|August 24, 2015 11:00:30 AMReply

What is the startegy now...Market down....IOC market price 380-382....

12. NKD

| Link|August 24, 2015 8:47:17 AMReply

-201

11. NKD

| Link|August 24, 2015 8:35:50 AMReply

sgx down -185 ioc may available at 350 in open market dont apply

10. Deepak Shah

| Link|August 23, 2015 11:58:29 PMReply

shortsale in the morning..ideally price should go to 380 tomorrow to bridge the gape between actual market price i.e 394 and OFS price(cutoff price-5%).... theoretically speaking it should happen tomorrow.
share your views.

9. NALLA KEDARNATH

| Link|August 23, 2015 7:39:51 PMReply

Dear friends

OFS of IOC is open for subscription on Monday.

Check out details of previous OFS as below:

08.04.2015 - REC: FP-315, NR-allotment 327.2, R-allotment 333.3, LTP-254

27.07.2015 - PFC: FP-254, NR-allotment 254.1, R-allotment 261.9, LTP-228

21.08.2015 - DCI: FP-382, NR-allotment 382.0, R-allotment 393.1, LTP-381

FP=Floor price, NR=Non-retail, R=Retail, LTP=Last traded price

It is clear that NR allotments have been at much lower price
than R allotments. Even with 5% discount, retailers have not
gained anything in these OFS. Many must have lost heavily.
The higher allotment price for retailers is becathey put in
the bids at higher rate.

I would advise retailers to put in bids at Floor price only so that
there is some margin of profit left. It may be that subscription
may be more than allocation. In that case it will be a lottery which
is far more better than all of us making a meager gain at the cost of huge risk & loss

8. jigaReligare

| Link|August 23, 2015 5:34:40 PMReply

any grey mkt premium in ahmedabad for ioc ofs

7. Sunil P

| Link|August 23, 2015 12:04:28 AMReply

Things to note:
a)       You can place multiple bids at multiple prices.
b)      Multiple Bids can be placed at Cut off or Limit price or both.
c)      To get 5% discount, the total bid value cannot exceed 2 lacs in Retail Category
d)      Bids can be modified multiple times till 3.30 P.M.
e)      Discount of 5% will be on final cut off price for Retail investors
f)      In case you sell any shares on August 24, 2015 you can that funds to apply for OFS       (the shares sold need to be in rolling segment)

6. Ankur Goell

| Link|August 22, 2015 9:13:27 PMReply

Suppose someone gets share in allotment than when will those share available for trading.

5. Uchit Patel

| Link|August 22, 2015 6:38:21 PMReply

I am requesting all to don''t apply over the floor price. This is very huge ofs and everyone get allotment at floor price like coal India ofs. Don''t do bidding at high price. All retail investors lost money in last ofs power finance.

4. S J P Shares

| Link|August 22, 2015 1:29:55 PMReply

IOC OFS FLOOR PRICE DECLARE RS.387

3. VALUE INVESTOR

| Link|August 22, 2015 8:42:09 AMReply

Applying in OFS is futile exercise and is useless, with oil prices falling in international market to $40 a barrel its not an attractive proposition either neither the timing of the OFS

2. Chaku Bhura

| Link|August 21, 2015 11:55:04 PMReply

Kale avse Jiga. 22th Aug.

1. jigaReligare

| Link|August 21, 2015 8:40:09 PMReply

any news about discount in retail & floor price

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