The Cabinet Committee on Economic Affairs, on Thursday, approved the proposal for sale of 10 per cent government stake in Indian Oil Corporation (IOC), which is likely to fetch around Rs.3,840 crore to the exchequer at the current market price.
The stake sale would happen through the offer for sale route. This decision was taken at a meeting chaired by Prime Minister Manmohan Singh here.
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 country’s largest refiner. At present, the government holds 78.92 per cent stake in IOC. IOC has a market capitalisation of Rs.54,519 crore.
It posted a net profit of Rs.5,005 crore in 2012-13, up from Rs.3,954 crore in the previous year.
The disinvestment target through the stake sale of public sector undertakings in the current financial year is Rs.40,000 crore. So far, it has raised Rs.929 crore through stake sale in MMTC, Hindustan Copper and National Fertiliser.