EGoM clears OIL divestment proposal
In what may fetch the exchequer close to Rs. 3,000 crore, the EGoM, headed by FM P Chidambaram, on Friday cleared the proposal that will allow the Centre to offload its 10% equity in OIL. HT reports.
In what may fetch the exchequer close to Rs. 3,000 crore, the Empowered Group of Ministers (EGoM), headed by FM P Chidambaram, on Friday cleared the proposal that will allow the Centre to offload its 10% equity in Oil India Ltd (OIL).
“The proposal has been cleared. Disinvestment will take place on February 1 through OFS route. We will raise roughly R2,500-3,000 crore,” said petroleum secretary G C Chaturvedi.
According to sources, shares will be offered at a discount.
“Price has been determined. It has been communicated to stock exchanges,” said petroleum minister Veerappa Moily.
The government has proposed to sell 10% stake, or 6.01 crore shares, in petroleum exploring company OIL through the offer for sale (OFS) route. The government currently holds 78.43% stake. OIL’s paid-up capital, as on March 2012, was Rs. 601crore.
Shares of OIL were trading at Rs. 528 apiece, down 2.14% from its previous close on the BSE, in later afternoon trade. At current prices, 10% stake can fetch around Rs. 3,000 crore.
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs