The government on Saturday set the floor price of IOC stake sale at Rs 387 per share — 1.9% below Friday’s closing price of Rs 394.45.
The government on Saturday set the floor price of IOC stake sale at Rs 387 per share — 1.9% below Friday’s closing price of Rs 394.45. The 10% stake sale in the state-owned oil marketing company via the offer for sale (OFS) route will help the Centre raise at least Rs 9,400 crore, before stock exchange fees and other duties and taxes.
Retail investors, whose investment should not exceed a total R2 lakh, will get an additional 5% discount in the cut-off price in accordance with the OFS rules and have 20% of the total offer size reserved, as per the stock exchange announcement.
As part of the FY16 disinvestment programme, the government on Friday announced to offload 10% stake, representing nearly 24.28 crore shares, in the country’s biggest oil refiner. Post the deal, government’s holding will drop to 58.57%.
IOC’s secondary market transaction will be the fourth-largest OFS of all time. The Centre had raised R22,557.63 crore by selling 10% in Coal India in January 2015. The central exchequer had earlier garnered Rs 12,749.50 crore from ONGC in March 2012 and Rs 11,457.54 crore from NTPC in February 2013.