The Cabinet is likely to consider tomorrow the proposal for sale of 10 per cent of Government’s stake in Indian Oil Corporation (IOC), which may fetch over Rs 4,300 crore to the exchequer at the current market price.

“IOC disinvestment proposal is likely to come up for consideration at CCEA (Cabinet Committee on Economic Affairs) meeting tomorrow,” sources said, adding that the stake sale would happen through the offer for sale route.

The Disinvestment Department has already selected five merchant bankers — Citibank, HSBC, UBS Securities, SBI Capital and J M Financial — to manage the stake sale of the oil major.

Shares of IOC were trading at Rs 226.90, up 0.44 per cent, in the afternoon trade on the BSE. At the current market price, the sale of 19.16 crore shares would fetch Rs 4,347 crore to the exchequer.

At present, the Government holds a 78.92 per cent stake in IOC.

IOC, the nation’s largest refiner, has a market capitalisation of Rs 54,519 crore. It posted a net profit of Rs 5,005 crore in 2012-13 against Rs 3,954 crore in the previous year. The company’s profits jumped to Rs 10,221 crore in 2009-10.

IOC sells fuel at below-market prices, for which it is partially compensated by the Government.

The disinvestment target through PSU stake sale in the current financial year is Rs 40,000 crore. So far, the Government has raised Rs 828 crore through stake sale in MMTC and Hindustan Copper.