Colombo: The Indian Oil Company's attempt to raise $ 35 million for its Sri Lanka operation has been a huge success with the company's Initial Public Offering (IPO) being oversubscribed by over six times.

Lanka IOC had hoped to issue 100 million shares of Rs 10 each at a premium of Rs 13 to 17 under a unique bidding scheme where investors could ask for shares at prices raging from Rs 23 to 27 per share.

"Initial indications are that the IPO is at least six times oversubscribed," the Secretaries to the issue, SSP Corporate Services, said even as more applications received in the mail were being processed.

The objective of the IPO was to raise money to fund the company's capital expenditure commitments during the next two years.

The company wants to spend $ 15 million on improving filling stations while another $ 15 million will go to refurbish 35 to 40 oil storage tanks at the China Bay, in Trincomalee.

The balance $ 5 million will go to set up a blending plant for lubricant oils and vehicle fuel additives in Trincomalee. Any shortfall in funding will be met with internally generated cash and debt.

Lanka IOC enjoys a 10-year tax holiday in Sri Lanka. All its capital goods imports are also duty-free.