2015-16 Disinvestment - NDA Govt to Divest 10% Stake in Indian Oil corporation(IOC)Saturday August 22,2015

The Government on Saturday Aug 22,2015 fixed the floor price for selling its 10 per cent stake in Indian Oil Corp (IOC) at Rs.387 a share, about 2 % below last closing, which is likely to fetch Rs.9,302 crore to the exchequer.

The government, which holds 68.6 % interest in IOC, will sell 24.28 crore equity shares through an offer for sale (OFC) on Monday August 24,2015

“The floor price for the sale in terms of the SEBI OFS circular shall be Rs.387 per equity share of IOC,” the government said in a regulatory filing.

The price fixed is 1.8 % lower than Friday August 21,2015 closing of Rs.394.45 per IOC share on BSE.

At the floor price, the government, after considering 5 per cent discount being offered to retail shareholders, will garner about Rs.9,302.21 crore. IOC’s share sale will be the fourth disinvestment this fiscal, but the biggest so far in 2015-16.

The earlier three stake sales have raised about Rs.3,300 crore.

The IOC stake sale will, however, dwarf in front of Rs.22,557 crore that the government raised through a stake sale in Coal India Ltd. last year.

IOC stake sale fully subscribed

Amid a bloodbath in global stock markets, including within India, the offer-for-sale (OFS) of Indian Oil Corporation (IOC) on Monday Aug 24,2015 was a relative success

The NDA Government had placed 24.28 crore shares for sale, at a floor price of Rs.387 apiece. The OFS came on a day when the Sensex fell nearly 6 per cent or 1,624.50 points to close at 25741.56, on the back of similar falls across Asia and Europe, especially in China.

The total subscription amount was around Rs.11,107 crore, and the issue was oversubscribed by 18 %. The government is likely to receive around Rs.9,379 crore out of this

LIC Rescues IndianOil

The offer-for-sale through stock exchanges conducted by Indian Oil Corporation would have bombed had LIC not come to the rescue.

LIC increased its stake in the oil marketing company by acquiring over 20.87 crore shares (8.59 per cent) taking its total shareholding in the public sector oil major to over 26.98 crore shares (11.11 per cent).

The shares were picked up in a combination of offer-for-sale and open market purchases, said a statement from LIC.