Indian Oil stake sale on Monday

The Indian government has set a floor price for the sale of shares in top state-run refiner Indian Oil Corp Ltd at 387 rupees each, the company said, a two percent discount from Friday’s close.

The government, which holds 68.6 per cent interest in IOC, will sell 24.28 crore equity shares through an offer for sale (OFC) on Monday, the floor price of which will be announced tomorrow evening.

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.

The auction of IndianOil share on the stock exchanges will be the fourth disinvestment this year and the biggest so far. “There is excellent appetite for the stock”.

Shares of IOC closed 0.70 per cent down at Rs 394.45 apiece on the BSE on Friday. The stock has rallied 19% this year, extending a 55% surge in 2014.

The OFS will open at 0915 hours on Monday and shut on the identical day at 1530 hours. The earlier three stake sales had raised just over Rs 3,000 crore, including Rs 53 crore that the government mopped up by selling 5% in Dredging Corporation of India (DCI), which was over-subscribed on Friday.

The authorities is concentrating on to raise Rs sixty nine, 500 crore from disinvestment in the present fiscal. The government intends to sell 242.79 million equity shares each of face value of Rs 10 each.

Retail investor has been outlined as a person investor who locations bids for shares of complete worth of no more than Rs 2 lakh combination.

Citigroup, Deutsche Bank, Nomura and Indian investment banks JM Financial and Kotak Securities are the managers of the Indian Oil share sale.

The department of disinvestment is now working on getting around 20 companies ready for stake sales.

Besides, it’s planning to sale 10 % stake in Coal India.