Indian Oil Stake Sale Floor Price Set at Rs. 387 a Share
The government will on Monday sell 10 per cent stake in Indian Oil Corporation (IOC), the nation’s biggest oil firm, through an offer for sale (OFS) that can fetch about Rs 9,500 crore to the exchequer. As per this, the government is expected to receive Rs 95 billion for 10% stake sale through OFS. Any investor can bid on or above the floor price in the share sale to take place between 9.15 am-3.30 pm on Monday.
The Indian Oil Corporation Ltd.is India’s largest company by sales with a turnover of Rs.
That may lure investors to the share sale and allow Prime Minister Narendra Modi to mobilize funds to spend on various welfare programs in Asia’s third-largest economy.
Shares of IOC closed 0.70 % down at Rs 394.forty five apiece on the BSE at present. The stock has rallied 19% this year, extending a 55% surge in 2014.
“This is a very good time to disinvest in IOC, and there is excellent appetite in the market”, Disinvestment Secretary Ms. Aradhana Johri told reporters at a press conference.
Presently, the government holds 68.57 per cent shares in IOC, the biggest oil refining and marketing company in the country.
Earlier this month, the government said it was aiming to sell a 10 percent stake in giant Coal India that experts said was valued at around 3.7bn.
Besides, it owns and operates 24,405 petrol pumps – rather less than half of India’s fifty three, 419 filling stations. It sold 14 lakh shares and received bids worth Rs.
Due to risky market circumstances, the federal government has been in a position to sell stakes in exclusively three PSUs – PFC, REC and Dredging Corp – this fiscal to raise over Rs 3,000 crore.
8 crore shares, would be reserved for retail investors, who would also be entitled to a 5% discount to the cutoff price, the government said in a filing on Friday. Other major stakeholders are ONGC (13.77 per cent), Oil India (5 per cent) and LIC (2.83 per cent).