Govt clears Oil India's disinvestment proposal
SME News, Thursday, Jan 31, 2013 11:51:09 AM IST
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NEW DELHI: The government will offload its 10 per cent equity in Oil India Ltd (OIL) on Friday which may fetch the exchequer up to Rs 3,000 crore. On Wednesday, the government has cleared a proposal to sell 10% stake in state-run Oil India.
The decision was taken at a meeting of the Empowered Group of Ministers, headed by finance minister P Chidambaram.
Veerappa Moily stated, "Price has been determined. It has been communicated to stock exchanges."
The Government has proposed to sell 10 per cent stake or 6.01 crore shares in the petroleum exploring company OIL through offer for sale (OFS) route. OIL's paid-up capital as on March 2012, was Rs 601 crore.
Earlier, EGoM had deferred its decision on OIL stake sale after potential investors raised some concerns over the subsidy-sharing policy of the government. The cabinet committee on economic affairs, or CCEA, had cleared 10% stake sale in Oil India in September 2012.
The government holds 78.43 per cent stake in the company and would come down to 68.43 per cent, after disinvestment.
OIL issue would help the Centre inch towards the Rs 30,000-crore disinvestment target set for the current fiscal. The government has so far raised Rs 6,900 crore through disinvestment.
The company was listed in 2009 and the government had then raised around 2,247.06 from the initial public offer (IPO).
The government will also launch its PSU exchange-traded-fund (ETF) in the next fiscal, besides continuing to push companies to opt for share buybacks if they do not intend to go to the market.
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