Robust demand for Oil India's IPO also boosted hopes the government
will look to sell more stakes in state firms as it looks to raise
funds and cut a widening budget deficit. The 26.4 million share
offering, priced at a discount to peers, was subscribed 30.81 times by
6:00 p.m. (1230 GMT) on the final day, according to the National Stock
Exchange's website.

The portion of the IPO allotted to institutions was oversubscribed
more than 50 times, with most bids coming at the higher end of the
range of 950 to 1,050 rupees, a banker involved in the deal said. Oil
India's IPO follows recent offerings from state hydropower producer
NHPC and private utility Adani Power, which had together raised $1.9
billion. Analysts say Oil India's strong fundamentals, bright long-
term growth prospects and better record for discoveries over larger
state-run rival Oil and Natural Gas Corp will draw investors to the
company.

"The valuations for Oil India are much cheaper than peers, and its
exploration pipeline also looks better than ONGC," Sonam Udasi, vice
president at BRICS Securities, said. "Even if the overall market is
weak, we could see a strong listing. We think the shares could see a
premium of 20 to 25 per cent on the listing day."

Oil India, which is primarily into exploration, development,
production and transportation of crude oil and natural gas onshore in
India, is also exploring crude oil and natural gas in Egypt, Gabon,
Iran, Libya, Nigeria, Timor Leste and Yemen. The company's market
value after the offering would be $4.8 to $5.3 billion based on the
indicative price band, according to Macquarie analyst Jal Irani.