Oil India Limited Buyback offer 2018
Oil India Limited (OIL) traces and symbolises the development and growth of the Indian petroleum industry. From the discovery of crude oil in the far east of India at Digboi, Assam in 1889 to its present status as a fully integrated upstream petroleum company, OIL has come far, crossing many milestones.
Oil India Limited was incorporated on February 18, 1959, to expand and develop the newly discovered oil fields of Naharkatiya and Moran in the Indian North East. In 1961, it became a joint venture company between the Indian Government and Burmah Oil Company Limited, UK.
In 1981, OIL became a wholly-owned Government of India enterprise. Today, OIL is a premier Indian National Oil Company engaged in the business of exploration, development, and production of crude oil and natural gas, transportation of crude oil and production of LPG. OIL also provides various E&P related services and holds 26% equity in Numaligarh Refinery Limited.
The Authorized share capital of the Company is Rs. 2000 Crores. The Issued, Subscribed and Paid share capital of the company is Rs. 1134.90 Crores. At present, The Government of India, the Promoter of the Company is holding 66.13% of the total Issued & Paid-up Capital of the Company. The balance 33.87% of the Equity capital is held by Public and others including Bodies Corporate, Mutual Funds, Banks, FIIs, Resident Individuals etc.
OIL has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and a majority of gas production. Rajasthan is the other producing area of OIL, contributing 10 percent of its total gas production.
Additionally, OIL’s exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, USA, Nigeria, and Sudan. In a recent CRISIL-India Today survey, OIL was adjudged as one of the five best major PSUs and one of three best energy sector PSUs in the country.
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Dec 03 2018 |
| Buyback Opening Date: | Feb 15 2019 |
| Buyback Closing Date: | Mar 01 2019 |
| Buyback Offer Amount: | ₹ 1085.72 |
| Date of Board Meeting approving the proposal: | Nov 19 2018 |
| Date of Public Announcement: | Nov 19 2018 |
| Buyback Offer Size: | 4.45% |
| Buyback Number of Shares: | 5,04,98,717 |
| FV: | 10 |
| Buyback Price: | ₹ 215 Per Equity Share |
Details of Buyback:
Salient financial parameters:
| Year | Revenue | PAT | EBITDA Margins | PAT Margins | EPS |
| 2016 | 11,158.63 | 2,301.67 | 37% | 21% | 38.2 |
| 2017 | 11,191.07 | 1,548.68 | 33% | 14% | 19 |
| 2018 | 12,140.64 | 2,667.93 | 37% | 22% | 35 |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| (i) Amount Invested in Buyback | 1,80,000 | 1,80,000 | 1,80,000 | 1,80,000 |
| (ii) No. of Shares buyback | 297 | 450 | 675 | 900 |
| (iii) BuyBack Profit | 4,455 | 6,750 | 10,125 | 13,500 |
| (iv) Profit(%) | 2.4% | 3.75% | 5.6% | 7.5% |
Recommendation:
Company Contact Details:
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Final Analysis of Oil India 2018 ( Return Analysis)
1. Buyback Announcement date: 19.11.2018—– Share Price was 200.
2. 900 Shares bought at Rs. 200 means an investment of 1,80,000.
3. Retail Acceptance Ratio was 50%. i.e. out of 900 shares, 450 shares have been buyback by the company. Profit on Accepted Shares=6750
4. The final Accepted Shares were taken back on 13.03.2019. The Share price on 13.03.2019 was 176, so had you sold the remaining 450 shares, the loss on unaccepted shares was 10800.
5. Overall we can say a loss of Rs. 4050 on an investment of 1,80,000.
Oil india buyback response
General 199%
Reserved 106%
When dividend will come and buy back amount will be credited into bank account ?
Wonderful advice by Market Wizard to hold shares for Dividend!!!
Thanks a lot!!
Really very useful site!!
Please keep it up.
Thanks!!
Yes sir…tks…
Feels extremely happy.
My stand vindicated 95% Acceptance!!!!!
AR 94%
THANKS TO MAHEBUBKHAN
AR 70
%
ANY NEWS ABOUT BUYBACK ACCEPTANCE
Dividend credited?
Dividend credited today to bank.
Tks
AR 70
%
@market wizard..
Did u have a chance to look at the number of shares tendered in the retail category?
https://www.bseindia.com/markets/publicIssues/BSEDemandSchedule_otb.aspx?Scripcode=3887
The total “Individual” Shares bid for OIL India are 1,14,95,049
So minimum AR would be 65%.
Overall AR is 53.95%,
AR for small investors?
Will b 75% to 80%
BSE Ltd board to meet to consider buyback on 07.05.2019.
Second buyback
Retail Acceptance is going to be 100%
how can v conclude it today itslef?
sitll 2 days to go. any idea on how many shares alloted to retail and how many tendered ?
1 day to go. rite now retail is subscribed around 150%. So small investors quota likely to be accepted for 100%.
Has anybpdy received dividend?
If 100 shares were on credit as on record date and later purchased 200 more, can we tender 100 only or can we tender total 300 shares.If doing so , will it attract any disqualification.?
Even if You tender 300 Shares, only 100 shares will be considered for buyback purpose.
If undersubscibed then will they consider over and above the shares held on record date.
Thank you.MW.
Your application will be rejected. you will be disqualified. It happened to one of my clients once.
Thank you.
Tx Mw Sir it is good then. I understand from ur reply earlier today is if shares are blocked I am eligible to get dividend. True please advise tx
i am yet to get the tender/offer whom i have to contact . how can i apply as i have 600 shares on record date
Please download the tender form here and sent it to the company. The Tender form is available at page no. 55
https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/feb-2019/1549879331366.pdf#page=1&zoom=auto,-23,842
Or
Eligible Shareholder(s)who intend to participate in the Buyback will be required to approach their respective Shareholder Broker (along with the complete set of documents for verification procedures) and have to ensure that their bid is entered by their respective Shareholder Broker or broker in the electronic platform to be made available by the Designated Stock Exchange before the Buyback Closing Date, otherwise the same are liable to be rejected
For some brokers you just make a phone call and tell them how much you want to sumit.
For Icici direct you can do it your self online in your demat acvount by just clicking 2 or 3 check boxes.
Oil India has declared a dividend of Rs.8.50 per share.
Record Date= 22.02.2019
Please do not tender share before 22.02.2019, else you will not get the dividend.
Yes that is true. Please submit your shares for buy back only after feb 22nd.Then even if you give it for buyback you will get Rs 8.50 per share for those shares.
Hello Sir,
I have tendered my 1350 shares on 22-02-19 and it got debited thinking that effective date mentioned in moneycontrol is 21-02-19. I spoke to my broker rksv and they advised that I will not be eligible for dividend. Is it right as I was having the shares a day ahead which is 21-02-19. Please advise
Shares if blocked and not debited must be eligible for dividend too else not.
Shareholding position is taken on record date EOD for dividend. Even if the shares are moved to broker pool account to settle secondary sale, the dividend will be paid to broker and thereafter can be claimed by the client from the broker. But in this case the shares would have moved to the escrow for buyback and no beneficiary can be identified, so no dividend will be paid out on these shares.
Under buyback share are only blocked till buyback ends so dividend would be credited to investor account only
Final Letter of Offer
Small Shareholder 17 : 52
General Category 10 : 259
15/02 to 01/03
32.5% entitlement. Message received today.
Any updates on buyback…?
Oil India Buyback
Date of Opening- 15.02.2019
Date of Closing- 01.03.2019
High Entitlement expected.
source?
No BSE announcement has been made
Tks…
I am holding 600 shares of ongc. But my broker says since bse is not par ti cipating in buy back i cannot participate in buy back because they are not registered with nse but only with bse. What is remedy for me to participate in buy back. pl advise urfgently as buy back has started
You have to register in NSE with same or different broker
When offer letter will come any idea????
Any update about tender date
Still no news I wonder how come IOC that announced buyback much later than OIL has sent the offer letters. I received yesterday but yet to recieve from OIL
R/Sir
> I have purchase oil india share on Dt. 30.11.18 But credit
> in my Demet account in 4.12.18. what I can participate in buyback
No. You can’t take participation in Buyback.
Any information about buyback process?
Acceptance ratio?
Today stock hits new 52 week low @180.00 on NSE
I warned about this stock in the group previously. The way crude is falling the company is poised for poor results in coming quarters. I think we all should understand the business model of the company for better judgment on the stock. The 80% of the company business comes from crude if crude falls the company bound to have pressure on margins and the same is being reflected in the price as well.
Record date gone!!
With subdued market performance, I expect 100% acceptance like NLC!!
Today trading at 189
Please suggest for buyback purpose
What is AR in this
Yesterday is the last day for buyback purpose
Many investory who brought yesterday for buyback purpose only may be trapped as acceptance ratio may not be favourable.
With all this going, I am expecting 100% acceptance in Oil India!!
Liked your positive attitude. Keep up the spirit sumit bhai..
This stock is looking risky now.
The price is falling. The sharp fall in crude is negative for the company. The next quarter results would be poor.
Oil India stock fell as much as 2.9 percent to Rs 199.2, its lowest in 10 days in trade today. The stock has fallen after four days of consecutive gains.
Moody’s expects company’s net borrowings to increase to Rs 11,000 crore by March 2019, up from Rs 9,000 crore as of March 2018. Oil India will buy back 5.04 crore of its shares for a little over Rs 1,085 crore as part of the government’s push to cash-rich PSUs to part with their surplus either by paying higher dividends or through share buybacks so as to help meet revenue targets.
Net borrowings increase is also driven by expectation that company will continue to pay high shareholder dividends and have higher capital spending in fiscal year ending March 2019, Moody’s said.
In a regulatory filing, OIL said its board has approved buyback of shares at an aggregate of no more than 10 per cent of the fully paid-up equity share capital and free reserves of the company.
The board approved “the buyback by the company of its fully paid-up equity shares of Rs 10 each not exceeding 5.05 crore equity shares (representing about 4.45 per cent of the total number of equity shares in the paid-up share capital of the company) at a price of Rs 215 per equity share payable in cash for an aggregate consideration not exceeding Rs 1085.72 crore,” it said.
The nation’s second largest oil explorer had a little less than Rs 20,000 crore of reserves.
should we participate in this buyback or stay away
Got mail from Cochin shipyard company today. I am holding 300 shares and happened to know the acceptance is only for 21 shares. Poor acceptance ratio – 7 % only for retail investors. Anyone else got mail ?
Cochin ship yard…i also got 11 eligible out of 160…expect AR to be around 30 for retailers…
I also got offer letter of cochin shipyard for the eligibility of 7 out of 100 buy price is @524.20 and trading@379.I would like for not to tender and remain invested
close to 40% AR expected.
I have a different view
I expect 50-75 % acceptance ratio and close to
I expect the entitlement ratio to be 35-50%
What was the entitlement last year when the size of the buyback was about 40% higher.?
It might be as investors are not attracted towards this buyback looking at appreciation.
last year the entitlement was 52% and acceptance was 100%
Exactly with 1500 crores the entitlement was 50 %. So with 1100crores entitlement would be less than 40%. Plus this year more people are buying for a paltry benefit.
See the trend actual entitlement in every issue is lower than expectation.
Not attractive .better to stay away if you want to buy now participate in the buy back
Not much upside from current level. Plus with crude falling, the coming quarter would see pressure in revenue and margins as 80% of business comes from crude
Company is not having reserves.It will depend on debt to pay amount required for buyback.
You are wrong Jayavant. The Company has reserves of close to 28000 Cr . The company without Reserves and Surplus can’t do Buyback or Bonus issue.
Thanks for correcting my view.I have read it on one website.
Sorry it is Indian oil corporation under debt. I was confused due to similarity in name.Once again thanks for correcting.