ONGC and Oil India Ltd (OIL) are likely to buy a 10 % stake in
Indian Oil Corp (IOC) from the government at Rs. 220 per share,
aggregating about Rs. 5,300 crore.
The sale of the 10 % stake, or 24.27 crore shares, will be through an off-market transaction, with Oil and Natural Gas Corp (ONGC) and OIL each buying 5 %
ONGC currently holds an 8.77 % stake in IOC
Note
An Empowered Group of Ministers (EGoM) headed by Finance Minister P. Chidambaram had on February 28,2014 decided to sell the stake in IOC, the nation’s largest oil firm, at a discount of 10 % through an off-market deal.
IOC scrip traded at about Rs. 245 on that day and a 10 per cent discount to that price was calculated to arrive at a selling price of Rs. 220 a share. Also, Rs. 220 is the three-month average trading price of IOC shares.
The sale of the 10 % stake, or 24.27 crore shares, will be through an off-market transaction, with Oil and Natural Gas Corp (ONGC) and OIL each buying 5 %
ONGC currently holds an 8.77 % stake in IOC
Note
An Empowered Group of Ministers (EGoM) headed by Finance Minister P. Chidambaram had on February 28,2014 decided to sell the stake in IOC, the nation’s largest oil firm, at a discount of 10 % through an off-market deal.
IOC scrip traded at about Rs. 245 on that day and a 10 per cent discount to that price was calculated to arrive at a selling price of Rs. 220 a share. Also, Rs. 220 is the three-month average trading price of IOC shares.
ONGC and OIL, however, wrote to the Petroleum Ministry saying they would
each buy a 5 per cent stake in IOC at the six-month average traded
price and not at the current rate.
The Govt then decided to offer the IOC shares to the companies at a
10 per cent discount to the current market price through an off-market
deal.
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