The government is believed to be moving swiftly to sell a 3% stake in Indian OilBSE -1.70 % Corporation, or IOC, via the offer for sale (OFS) route. Sources say the government may execute this minority stake sale before the end of June subject to suitable market conditions.
Going by the current market price, the IOC stake sale could fetch the central exchequer more than Rs 6000 cr. It will also result in the government’s stake being pared to around 52% in the country’s largest refiner.
Sources say ten investment bankers including from SBI Cap, ICICI Direct, Axis, Kotak, Goldman Sachs and Morgan Stanley today made presentations on the proposed IOC stake sale to the Department of Investment and Public Asset Management (DIPAM). Five bankers are expected to be shortlisted within a few days.
It is believed most bankers have said two to three weeks will be needed to prepare for the government’s 3% stake sale in IOC.
DIPAM under the aegis of the Finance Ministry is in charge of disinvestment, and has been set an ambitious target of raising Rs 72,500 cr this fiscal, of which Rs 46,500cr has to be raised via minority stake sales.