India's second largest oil producer, Oil India, OIL, plans to tap the capital market through an initial public offer, IPO within this financial year, reports Zeenews.com.
The exploration major will offload 10% stake to the public and the amount raised will be used for funding expansion plans in India as well as overseas.
The total paid-up capital of OIL is Rs 214 crore (Rs 2.14 billion).
"We will come out with our IPO within this financial year and dilute 10% of our stake to the public," OIL chairman and managing director M R Pasrija told reporters.
Proceeds from the public offer could also be used toward taking a 25% stake in the 9-million tonne Bhatinda refinery of HPCL .
The company also needs funds to boost domestic oil production in Assam and Rajasthan.
OIL plans to increase its oil production from 3.20 million tonnes per annum to 4 million tonnes by 2007-08, besides augment its gas production by 1 million metric standard cubic metres per day, MMSCMD from the present level of 6.5 MMSCMD.
"Rajasthan production will be increased from 0.7 to 0.9 MMSCMD while Assam production would go up to 7 MMSCMD," Pasrija said.
Government of India holds 98.13% stake in OIL, while the rest 1.87% is held by the employees and shareholders.
The government has already given its approval to form a project-specific special purpose vehicle to undertake overseas projects including acquisition and exploration.
The total paid-up capital of OIL is Rs 214 crore (Rs 2.14 billion). 
