State-run explorer Oil India Ltd will go ahead with its initial public offer to raise up to $378 million after March despite the crash of three IPOs in a volatile Indian market, the firm's chairman said on Tuesday.

"We need not pull back as far as our offer is concerned, we have very strong fundamentals and nothing should come in the way," Chairman and Managing Director M.R. Pasrija told Reuters in a telephone interview.

Last week, Emaar MGF Land, an Indian joint venture of Dubai's Emaar Properties, and Wockhardt Hospitals axed their IPOs after a weak investor response and on Tuesday SVEC Constructions abandoned its offer.

Shares in utility Reliance Power, which in January raised $3 billion in India's largest IPO before the market slide, have fallen by a quarter in two days of trading. But Oil India expects good investor response for its offer to sell 11 per cent stake, or 26.4 million shares, in the IPO.

"Crude oil prices are strong, gas prices are going to remain strong, so our case is different than the rest," Pasrija said. He said the company was awaiting government clearance for appointment of seven independent directors on its board, after which it would seek the market regulator's approval for the IPO. "The government approval may come by next month after that only we can proceed. In any case, it will not be February or March, so it going to be after that," Pasrija said.

Oil India is 98 per cent owned by the government and it plans to use the funds raised through the offer for exploration, development of existing fields and buying equipment. The company produces 60,000 barrels a day from its oil and gas reserves in northeastern India and Rajasthan.

Ahead of the IPO, state-run refiners Indian Oil Corp will pick up a 5 per cent stake in Oil India while Bharat Petroleum Corp and Hindustan Petroleum Corp will each buy 2.5 per cent in the exploration firm. The lead managers for the issue are Morgan Stanley, Citigroup, HSBC Securities and India's JM Financial.

After Reliance Power's IPO, the world's largest this year, hoisted India to the top position in January, new offerings were seen as losing their shine as a global credit crunch and US recession fears rocked stockmarkets.

The benchmark BSE benchmark index has lost about 21 per cent from an all-time high of 21,206.77 hit on 10 January. Before the market slump, India had a record IPO pipeline of $15.8 billion for 2008, according to Thomson Financial. (Reuters)