IOC stake sale priced at 10% discount, 10% sale will fetch about Rs 5, 300 cr

IOC stake sale priced at 10% discount, 10% sale will fetch about Rs 5, 300 cr
The government has approved 10 per cent stake sale in Indian Oil Corporation (IOC) to state run ONGC and OIL at a discount of 10 per cent, which will fetch about Rs 5,300 crore to the exchequer, reported PTI.

"Yes, 10 per cent," Oil Minister Veerappa Moily said when asked if the IOC share sale will happen at a discount to market price.

The sale of 10 per cent stake or 24.27 crore shares will be through an off-market transaction, with ONGC and Oil India Ltd (OIL) buying 5 per cent stake each, said the media report.

"The two companies (ONGC and OIL) will now work out the deal and the stake sale will happen very shortly. It should be happening in next few days. The government advises the board and the two boards will meet and decide. It will be an off-market deal," Oil Secretary Vivek Rae told reporters after an EGoM meeting.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, met today to finalise the price of the share sale.

"We expect to raise around Rs 5,300 crore from IOC stake sale," Disinvestment Secretary Ravi Mathur said.

Dion Global Solutions Ltd.

Story first published: Friday, February 28, 2014, 12:53 [IST]
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