IOC to buy 5 per cent in Oil India for Rs1,100 crore
15 Sep 2009
Indian Oil Corp (IOC) will acquire a five per cent stake in Oil India Ltd (OIL), comprising 10 million equity shares, before the state-run oil explorer gets listed on the bourses on 30 September.
The government is also divesting a 10 per cent stake in OIL to other state-run refiners at the IPO price.
Oil India shares were priced at Rs1,050 each at the top end of the IPO issue and the shares would be listed on the bourses on 1 October, a source close to the developments said.
At Rs1,050 per share the IPO is expected to raise about Rs4,982 crore against the demand for shares worth over Rs85,576 crore.
Oil India had offered 11 per cent fresh equity (or 2.64 crore equity shares) to the public through the IPO at a price band of Rs 950-1,050.
"We will be buying one crore shares of Oil India, but we are waiting for the government to fix the date of purchase," IOC chairman Sarthak Behuria said.
Other state refiners, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL), are also buying 2.5 per cent stake each in Oil India.
Post-divestment (both IPO and equity sale), the government's holding will be down at 78.5 per cent against 98.13 per cent earlier.
