Country's second largest oil and gas company Oil India Ltd (OIL) has announced that the company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 26,449,982 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue, through a 100-per cent book-building process, comprises a net issue to the public of up to 24,045,438 shares and a reservation of up to 2,404,544 shares for subscription by employees. The issue will constitute 11 % of the fully diluted post-issue paid-up capital of the company, an official release said.

Oil India is primarily engaged in the exploration, development, production and transportation of crude oil and natural gas onshore in India. The company also processes the produced natural gas to extract liquefied petroleum gas.

The objects of the issue are to achieve the benefits of listing and to fund requirements for exploration and appraisal activities, development activities in producing fields, purchase of capital equipments and contracts and diversification of their existing business in downstream activities.

The shares offered are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). JM Financial Consultants, Morgan Stanley India Company, Citigroup Global Markets India and HSBC Securities and Capital Markets are the book running lead managers to the issue.