India's second-largest state-run oil and gas explorer said it hoped to launch an initial sale of shares in September as the newly elected government moves into privatisation mode.
Oil India Ltd (OIL) said it had begun talks with financial advisors about the exact timing of the sale, which comes as analysts forecast the government will fast-track privatisation to help close a yawning fiscal deficit.
"We have tentatively informed the board about a roadmap according to which the IPO [Initial Public Offering] should be there by September," Oil India Chairman NM Borah said.
"But this is subject to market conditions," he said.
He did not say how much the sale might net the company. OIL's announcement comes as India's benchmark Sensex share index is trading near-eight month highs. OIL produces 10 per cent of India's domestic crude output.
Investors have been betting the Congress government will push ahead with reforms now that it no longer has to depend on communist support to survive in parliament.
Following the sale, the government's stake in OIL would fall to 78.5 per cent from 98.13 per cent. Proceeds would be used to fund exploration and production. The share sale move by Oil India comes amid talk of IPOs by other state-run firms.
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