The Government holds 68.57 per cent shares in Indian Oil Corporation (IOC), the biggest oil refining and marketing company in the country will sell over 24.28 crore shares or 10 per cent of its stake in Indian Oil at Rs. 387 a piece can get over Rs. 9,000 crore.
- The floor price is at around 2 per cent discount on closing price of Rs. 394.45. Any investor can bid on or above the floor price in the share sale.
- Stake sale in IOC will be the fourth disinvestment this fiscal. The earlier three stake sales had risen just over Rs 3,000 crore.
- The decision to sell stake was taken after a ministerial level consultation between finance minister Arun Jaitley and oil minister Dharmendra Pradhan.
- The IOC stake sale marks the fourth round of disinvestment this year, the other three being in Power Finance Corporation, Rural Electrification Corporation and Dredging Corporation.
- A minimum 20 per cent of the offer size, or 4.85 crore shares, will be reserved for retail investors. Retail investors will be offered a five per cent discount to the cut-off price.
- In the non-retail investor category, 19.42 crore shares will be on offer with a minimum of 25 per cent reserved for mutual funds.
- Citibank Global Markets, Deutsche Equities India, Nomura Financial Advisory & Securities (India), JM Financial Institutional Securities and Kotak Securities Ltd will be the brokers.
- Other major stakeholders are ONGC (13.77 per cent), Oil India (5 per cent) and LIC (2.83 per cent).
- The government last sold its stake in IndianOil in March 2014 through an off-market transaction offering 5 per cent each to ONGC and Oil India raising Rs 5,340 crore. At the time, IndianOil’s shares were trading at Rs 269.20.
Indian Oil Corporation:
• Indian Oil Corporation Limited, or Indian Oil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
• It is the world’s 119th largest corporation, according to the Fortune Global 500 list, and the largest public corporation in India when ranked by revenue.
• Indian Oil and its subsidiaries account for a 49% share in the petroleum products market, 31% share in refining capacity and 67% downstream sector pipelines capacity in India.
• It is one of the seven Maharatna status companies of India, apart from Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation, Steel Authority of India Limited, Bharat Heavy Electricals Limited and Gas Authority of India Limited.