Roadshows for IOC stake sale in S'pore, Dubai to begin on Oct 6
New Delhi: The Disinvestment Department will embark on a three nation roadshow, including Singapore and Dubai, beginning next month to attract foreign investors for the 10 percent disinvestment of IOC, estimated to fetch the government over Rs 4,000 crore.
"The roadshows in Singapore, Hong Kong and Dubai to attract foreign investors in Indian Oil Corporation (IOC) will begin from October 6," sources said.
The Cabinet had last month cleared the sale of 10 percent government stake through the Offer for Sale (OFS) route in IOC.
IOC scrip closed at Rs 211.30, up 1.71 percent on the BSE. At the current market price, the sale of the 19.16 crore shares would fetch Rs 4,048 crore to the exchequer.
Government holds a 78.92 percent stake in IOC and following divestment, the stake would come down to 68.92 percent.
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.
IOC, the nation's largest refiner, has a paid up equity capital of Rs 2,428 crore as on March 31, 2013.
It posted a net profit of Rs 5,005 crore in 2012-13, up from Rs 3,954 crore in the previous year.
The company's profit peaked at Rs 10,221 crore in 2009-10. IOC sells fuel at below-market prices, for which it is partially compensated by the government.
It is primarily engaged in refining, transportation and marketing of petroleum products and petrochemicals with an installed refining capacity of 54.2 million metric tonnes.
The company is also now venturing into exploration and production of crude oil and distribution of natural gas.
The government's disinvestment target through PSU stake sales in the current financial year is Rs 40,000 crore. So far it has raised Rs 1,325 crore through disinvestment.