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The Union Government has fixed the floor price at Rs 510 a share for sale of its 10 per cent stake in Oil India. The price is 5.4 per cent discount to the Thursday’s closing price of Rs 539.20.
Oil India shares today gained 2.3 per cent over previous day's close on the BSE.
The Government would raise Rs 3,065 crore by selling 6.01 crore shares of Oil India through offer-for-sale route and the auction would take place tomorrow.
The decision on the floor price and date of the share sale was decided on Wednesday by the Empowered Group of Ministers but the pricing was not revealed then.
Diluting 5%
The Centre holds 78.43 per cent stake in the company and its stake would come down to 68.43 per cent, after the disinvestment.
Recently, the company conducted road shows in Singapore, Hong Kong, the UK and the US.
Oil India’s paid-up capital as on March 2012, was Rs 601 crore.
The Oil India public issue, the third disinvestment this fiscal, will help the Government to achieve its Rs 30,000-crore revenue target from stake sales.
The Government has so far raised Rs 6,780 crore through disinvestment of two PSUs — Hindustan Copper (Rs 880 crore) and NMDC (Rs 5,900 crore) — in the current fiscal.
badrinarayanan.ks@thehindu.co.in
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