New Delhi, May 4: Indian Oil Corporation is expected to seek downward revision of the price band suggested by Industrial Development Bank of India for transfer of the shares of Madras Refineries Ltd, now known as Chennai Petroleum Corporation Ltd, to it by the government.The financial institution, which had been given the mandate by the government to value the shares of the MRL as well as Bongaigaon Refinery and Petrochemicals Ltd, had suggested a price band of Rs 93-119 per share of MRL for its transfer to IOC. The price band suggested for BRPL shares was Rs 23-27.
IOC sources contend that the price suggested by IDBI was too high as the MRL stock was now trading on the BSE and NSE at approximately Rs 33 per share.IDBI had reportedly arrived at the price band on the basis of cash flows and current strengths of the refinery companies. IOC felt that market price should be one of the important factors in the valuation of transfer price of the shares. The company felt the transfer price of the share should be based on the market price, book value of the assets and future earnings of the company.
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