The government will sell a 10-per cent stake in Navratna public sector undertaking Oil India Ltd (OIL) to raise more than Rs2,500 crore (around $465 million), G C Chaturvedi, secretary, ministry of petroleum and natural gas, said today.
An empowered group of ministers (EGoM), headed by finance minister P Chidambaram, will meet today to decide on the price and time of the stake sale. The offer for sale is slated to be completed by Friday.
The government is offering 60.10 million shares (10 per cent) in Oil India Ltd via the `offer for sale' (OFS) route and the base price is likely to be at a discount to the current market price, according to reports.
The OIL stock was trading at Rs523, down 3 per cent from the previous close, in late afternoon deals on the Bombay Stock Exchange (BSE).
Post divestment, the government's holding in OIL will come down to 68.43 per cent from the current 78.43 per cent.
The government has so far, during the current financial year, raised a little over Rs6,900 crore of the Rs30,000 crore it has targeted this financial year ending 31 March 2013.