OIL India Limited was listed on the BSE and NSE yesterday. The company had issued 2.64 cr shares in a price band of Rs 950-1050. The issue was open during the period 7th September to 10th September. The issue received excellent response from institutional investors but HNI’s and retail investors did not subscribe in as large a number as in expected because of the losses suffered in the immediately preceding issue of NHPC. This issue was also from the government and has been the largest divestment till date.
The shares listed at Rs 1019 and Rs 1096 on the BSE and NSE respectively. The highs made were 1156 and 1156.70 respectively. The setting for listing day was what one could dream of. Markets were buoyant with the BSESENSEX gaining a staggering 273 points or 1.63% to close at 17126.84. The NSENIFTY gained 77.10 points or 1.54% to close at 5083.95. The previous day saw big brother ONGC put in a strong performance and gained Rs 32.35 or 2.79% to close at Rs 1189.65. A perfect setting for listing and OIL delivered. The stock closed at Rs 1140.55 and Rs 1135 on the BSE and NSE respectively.
| Exchange | Open | High | Low | Close | Net Change | % gain | Volume | Delivery | Del % age | Wt Avg |
| BSE | 1019.00 | 1156.00 | 1019.00 | 1140.55 | 90.55 | 7.94 | 8737957 | 2210695 | 25.30 | 1133.95 |
| NSE | 1096.00 | 1156.70 | 1090.00 | 1135.00 | 85.00 | 7.49 | 19748012 | 8321265 | 42.14 | 1133.66 |
| Total | 28485969 | 10531960 | 36.97 | |||||||
From the data given above it is clear that there has been a high delivery percentage on day one. Close to 37% of the shares traded were delivered. What is even more important is the fact that almost 40% of the 2.64 cr shares issued in the IPO have been delivered on day one. Very clearly these shares bought have not been by weak hands but by institutional investors. The most surprising thing that has happened is that the difference or gap between OIL and ONGC is now about Rs 26 or about 2.22%. The general consensus at the time of the IPO was that there should be a discount of about 10% between the price of ONGC and OIL as they had similar valuations and ONGC was ten times the size of OIL. The reason for the poor response was the belief was the overpricing. The next few days alone will clear the confusion on whether people perception was correct or incorrect.
In conclusion OIL India Limited won the day for investors on day one.
