Oil India listing price – Investors may gain 10-12% with the Oil India Share price

Oil India IPO is currently on and there are chances that the pricing by the government is done correctly as opposed to the NHPC listing price or the Adani power listing price and the reason being that both of them listed at just above issue price and the slipped below the issue price. That dismal show as has disappointed the investors and they are now wondering whether they need to invest in other IPO’s like the Pipavav shipyard IPO or the upcoming Indiabulls power IPO. So hopefully the Oil India listing will not disappoint the investors

It has been three days since the IPO has opened and the heavy bidding has been done by the QIB or the qualified institutional buyers. These are the big institutional folks who want to invest in the oil company stocks.

The issue has been priced Rs 950-1050 per equity share and it will raise around Rs 2,512 – Rs 2,777 crore.

A lot of analysts that are there in the stock market are saying that this is a commodity stock and ultimately it will be up to the investors to decide if they want to invest in the commodity stocks or not. The oil prices are a big factor here and if the oil prices rise the company will make good profits whereas if the oil prices declines then the company will not make good profits.

A lot of people who are there are comparing it with ONGC and considering that ONGC is a Navratna it makes sense to buy into ONGC as opposed to Oil India.

The challenge here is that investing in Oil India IPO would help if they price the issue at the lower range and then give some listing gains. If you are able to make 12% to 15% gains on the listing then on an annualized basis it is a very good return.

The government subsidy is a big factor but that can be a big plus till the time the government considers the opening up of the oil industry into a free pricing system.

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One Response to “Oil India listing price – Investors may gain 10-12% with the Oil India Share price”

  1. Ankit on September 24th, 2009 12:40 am

    i agree that oil india, being a mini -navratna may give 10-12% returns on listing.
    i just invested in the ipo. i hope i get some allotment

    thanks for your article

    Cheers
    Ankit

    http://www.ankitarora.net

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