Home ECONOMY Government to sell 10 percent stake in Indian Oil on Monday

Government to sell 10 percent stake in Indian Oil on Monday

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New Delhi, Aug 21:

The government will sell 10 percent of its stake in Indian Oil Corp (IOC) on Monday through an offer for sale (OFS), the oil marketer said.

Indian Oil Logo“The president of India, acting through and represented by the ministry of petroleum and natural gas, (the ‘seller’), is the promoter of Indian Oil Corporation has submitted to BSE a notice of offer for sale 24,27,95,248 equity shares aggregating to 10 percent of the total paid up equity share capital of the company,” the company said in a stock exchange filing on Friday.

The sale will take place on August 24, it added.

The government currently holds 68.57 percent shares in IOC.

At the current market price, the sale of 10 percent stake is estimated to fetch the government around Rs.9,500 crore.

The government has an ambitious fiscal disinvestment target for this fiscal of Rs.41,000 crore through stake sale in public sector units, and another Rs.28,500 crore through strategic stake sale by transfer of management control.

It has recently approved the sale of a 10 percent stake in IOC and five percent stake in power generator NTPC.

The government is also planning to sell part of its stake in another fuel retailer Bharat Petroleum Corp Ltd (BPCL) and the issue is at the inter-ministerial consultation stage, parliament was told last month.

IOC shares closed on Friday at Rs.394.45 a share down 2.80 points, or 0.70 percent, over its previous close on the BSE. (IANS)

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