LIC buys nearly 90% of 242.8 mn Indian Oil shares sold by govt

It was again Life Insurance Corp of India (LIC) that turned white knight to help yet another state-run company, Indian Oil Corporation, successfully divest stake amidst Monday's market turbulence.

The state-owned insurance giant has mopped by nearly 90 per cent of the shares worth Rs9,300 crore the government offloaded on Monday, the biggest divestment by the government so far this financial year.

The sale of 242.8 million shares of Indian Oil Corp, the country's biggest state-run refiner, was subscribed 1.18 times.

LIC's stake in the state-run oil marketing firm has gone up to 11.11 per cent from 2.52 per cent, after the latest acquisition of India Oil Corporation (IOC) shares on offer on Monday.

The insurer bought as many as 208.7 million shares of the 242.8 million shares or 8.59 per cent of IOC on offer, according to a filing by LIC.

The government had offered for sale through the OFS whose floor or minimum bid price was set at Rs 387 apiece.

IOC shares dipped to Rs378 on Monday as against the auction floor price of Rs387.

The government has so far mopped up Rs12,600 crore in four disinvestments this fiscal, starting April against the target of Rs69,500 crore for the entire fiscal.

The stake sale had managed to get total bids for Rs 11,107 crore for 28.74 crore shares, against offer of 242.8 million shares.