Indian Oil Corp says employee share sale a big hit
12 May 2016
The employee share offer of Indian Oil Corporation Limited (IOCL) got unprecedented response with nearly 40 per cent of the employees participating in the offer, says the company.
Employees applied for 53.17 per cent of the 1,21,39,762 shares offered for allotment, making it the highest ever employee participation in disinvestment process of any company after a public offer for sale (OFS) of shares, according to a release by the oil ministry.
The offer of shares by the government to eligible employees of IOCL was open from 2 May 2016 to 10 May 2016. The government expects to realise Rs237 crore from the employee share offer.
Pursuant to the decision to divest 10-per cent paid-up equity in Indian Oil Corporation Limited (IOCL), the government had approved that shares may also be allotted to the eligible and willing employees of the company up to a maximum of 0.5 per cent of the equity capital at a discount of 5 per cent.
IOCL successfully completed its OFS on 24 August 2015, realising Rs9,369 crore.
The lowest cut off during the OFS was Rs387 per share. Accordingly, after 5 per cent discount the offer price for employees was fixed at Rs367.65 per share.
The government expects employee participation in the disinvestment process to give a sense of belonging to the employees of the company.