IOC FPO by Dec if fuel prices deregulated | business | Hindustan Times
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IOC FPO by Dec if fuel prices deregulated

The country’s largest oil refining and marketing company, Indian Oil Corporation, is likely to make a follow on public offer by the end of this calendar year.

business Updated: May 05, 2010 21:35 IST
Anupama Airy

The country’s largest oil refining and marketing company, Indian Oil Corporation (IOC), is likely to make a follow on public offer (FPO) by the end of this calendar year.

Government sources said the Department of Disinvestment (DoD) is revisiting the possibility of an FPO in IOC.

DoD had been arguing that any FPO in state-owned oil marketing companies is possible only if the existing skewed pricing structure for auto and cooking fuels is corrected.

Prime Minister Manmohan Singh had recently decided to constitute an Empowered Group of Ministers to decide on freeing petrol and diesel prices from government control.

“If this happens, an FPO in IOC cannot be ruled out,” a DoD official said, adding it may happen by December.

The government owns 80.35 per cent in IOC and a follow-on public offer of up to 10 per cent may be considered.

The oil ministry had maintained that raising funds from the capital market was not prudent till issues like fuel pricing and subsidy issues that affect profitability were resolved.