Government approves 10% stake sale in Indian Oil Corporation to ONGC and OIL

Written by PTI | New Delhi | Updated: Feb 28 2014, 19:35pm hrs
Indian Oil CorporationIndian Oil Corporation stake sale priced at 10% discount; govt to get Rs 5,300 cr
The government has approved a 10% stake sale in Indian Oil Corporation to state-run ONGC and OIL, which will fetch about Rs 5,300 crore to the exchequer. The share sale price has been fixed at Rs 220, while the scrip was trading at Rs 248.45 at 1.00pm IST.

The sale of 10% stake or 24.27 crore shares will be through an off-market transaction, with ONGC and Oil India buying 5% stake each.

The two companies (ONGC and OIL) will now work out the deal and the stake sale will happen very shortly. It should be happening in next few days. The government advises the board and the two boards will meet and decide. It will be an off-market deal, Oil Secretary Vivek Rae told reporters after an EGoM meeting.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by finance minister P Chidambaram, met on Friday to finalise the price of the share sale.