Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), on Friday, bought 10 per cent government stake in Indian Oil Corporation (IOC) for Rs.5,340 crore giving a boost to the disinvestment proceeds of the government during the current fiscal.
The stake sale will double government’s disinvestment kitty to Rs.10,434 crore. In off-market transactions, ONGC and OIL bought 5 per cent stake each at Rs.220 per share, official sources said here. IOC shares closed at Rs.269.20 on the Bombay Stock Exchange (BSE), down 1.90 per cent, over the previous close.The Rs.220 is the three-month average trading price of IOC shares.The sale of the 10 per cent stake, or 24.27 crore shares, happened through an off-market transaction, with ONGC and OIL each buying 5 per cent. With the stake purchase, ONGC’s holding in IOC has increased to 13.77 per cent from 8.77 per cent. OIL did not previously hold any shares in IOC.
After the disinvestment, government shareholding in IOC has come down to 68.92 per cent from 78.92 per cent. The government had so far raised about Rs.5,093.87 crore through stake sales in PSUs during the current fiscal. It had lowered the revenue generation target from disinvestment to Rs.16,027 crore from Rs.40,000 crore set at the beginning of the fiscal.