The Empowered Group of Ministers (EGoM) has approved the pricing and time of sale of Government’s 10 per cent stake in Oil India.
Though the details of the base price for selling stake in OIL is not known. The sale is to take place on February 1. Expectations are that the Government could fix the base price at 4-5 per cent discount to the current market price.
OIL shares were trading at Rs 528 a piece.
As part of the Rs 30,000-crore disinvestment target for this fiscal, the Government proposes to divest 10 per cent stake in Oil India through offer for sale route. This is expected to fetch around Rs 2,700 crore at the prevailing market price.
For the stake sale, Oil India is also targeting foreign investors along with domestic investors.
At present, the Government of India, as a promoter is holding 78.43 per cent of the total issued and paid-up capital of the company. The balance 21.57 per cent of the equity capital is held by others.