Govt fixes floor price of Oil India stake sale at Rs 510, auction tomorrow
of the government, OIL issue was initially slated to happen in the last week of January, to be followed by one PSU stake sale every fortnight.
The government has so far raised Rs 6,900 crore through disinvestment in the current fiscal.
The stock has been on fire ever since the government started considering partial decontrol of heavily subsidised diesel prices. A partial deregulation would mean OIL having to pitch in lesser subsidy.
Upstream firms, like OIL and ONGC, make up for about 40 per cent of the revenue that fuel retailers lose on selling diesel, domestic LPG and kerosene at government-controlled rates.
The government had on January 17 allowed retailers to raise diesel prices by small quantum every month to cut the Rs 96,000 crore deficit on the fuel sale.
The international roadshows for OIL stake sale held in the US, UK and Middle East, to attract investors saw a very encouraging response.
OIL got listed on stock exchanges in the year 2009. As on March 31, 2012, the company has employee strength of 8,096.
Be the first to comment.
