10 Per Cent Discount Sale in IOC to Fetch Rs 5.3k Crore - The New Indian Express

10 Per Cent Discount Sale in IOC to Fetch Rs 5.3k Crore

Published: 01st March 2014 06:00 AM

Last Updated: 01st March 2014 01:25 AM

The government on Friday approved 10 per cent stake sale in ‘maharatna’ public sector enterprise Indian Oil Corporation (IOC) to state-run ONGC and OIL at a 10 per cent discount, which will help the government exchequer fetch about Rs 5,300 crore.

“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 Empowered Group of Ministers (EGoM) on disinvestment headed by Finance Minister P Chidambaram met on Friday to finalise the price of the stake sale.

The 10 per cent stake sale or the 24.27 crore shares will be transacted through an off-market transaction where both ONGC and OIL will buy 5 per cent share a piece.

“ONGC and OIL will now work out the deal and the stake sale will happen in next few days,” Petroleum Secretary Vivek Rae said.

 “Even if it is an off-market deal it does not augur well for neither those selling or nor buying the share as it erodes the valuation of the company,” an analyst with a global analytics firm said requesting anonymity.

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