Govt raises Rs 237 cr by selling small portion of its holding in IOC

By: | Published: May 12, 2016 6:25 AM

The government has said it has raised Rs 237 crore by selling a small portion of its holding in Indian Oil Corporation (IOC) to employees of the public sector oil retailer.

The government has said it has raised Rs 237 crore by selling a small portion of its holding in Indian Oil Corporation (IOC) to employees of the public sector oil retailer.

However, the Employee Offer of IOC was under-subscribed. “Employees applied for 53.17% of 1,21,39,762 shares offered for allotment,” the finance ministry said in a statement. Nearly 40% of the employees participated in the employee offer of IOC between May 2 and May 10, it said.

This was the highest ever employee participation in the disinvestment process of any company post offer for sale (OFS), the ministry said. The government had sold 10% stake in IOC through an OFS to raise Rs 9,369 crore on August 24, 2015.

The department of investment and public asset management (DIPAM) has a pipeline of over 20 PSUs in which it would sell minority stakes to raise Rs 36,000 crore in the current fiscal. It would raise another Rs 20,500 crore from strategic stake sales in PSUs. In April, the government kick-started the FY17’s disinvestment programme with 11.36% stake sale in NHPC through OFS to raise about Rs 2,700 crore.

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