Finance Ministry keen to disinvest in Indian Oil in November

Finance Ministry keen to disinvest in Indian Oil in November
In a bid to achieve its Rs 40,000 crore disinvestment target the Finance Ministry desires to sell 10 per cent of the government's stake in Indian Oil Corp (IOC) by end of the month, said the media report.

"We want to push the IOC stake sale first, within November itself. This will pave the way for disinvestment of other oil sector PSUs like Engineers India," a senior Finance Ministry official told PTI.

At the current price, the sale of 19.16 crore IOC shares, equivalent to 10 per cent of the government's holding in the company, would fetch more than Rs 4,000 crore, which is 10 per cent of this financial year's disinvestment target.

Besides, IOC posted an 82.5 per cent drop in net profit to Rs 1,683.92 crore for the July-September quarter after losses from foreign exchange and sales of diesel, cooking gas and kerosene below cost.

The government is waiting for disinvestment in IOC before going ahead with plans to sell 10 per cent in Engineers India Ltd (EIL).

At the current market price of Rs 175.10, the sale of 3.36 crore EIL shares would fetch about Rs 600 crore.
So far, the government has raised about Rs 1,325 crore from stake sales in six companies.

Dion Global Solutions Ltd.

Story first published: Monday, November 11, 2013, 9:20 [IST]
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