Mumbai: Indian Oil Corp (IOC) will buy
one crore equity shares or five percent stake in Oil India
Ltd (OIL) before the PSU explorer gets listed on the bourses
later this month.
"We will be buying one crore shares of Oil India, but
we are waiting for the government to fix the date of
purchase," IOC Chairman, Sarthak Behuria, said in Mumbai.
The PSU refiner is likely to shell out Rs 1,100 crore
to pick up a five percent stake in OIL, he said.
Oil India Ltd, the nation`s second-largest state-run
explorer, last week hit the capital market to raise funds for
The government on Monday fixed the issue price of the
share at Rs 1,050 per share, raising about Rs 4,982 crore.
The public issue of OIL, which closed on September 10,
was subscribed nearly 31 times, generating demand for shares
worth over Rs 85,576 crore.
The company offered 11 percent fresh equity (or 2.64
crore equity shares) to the public through the IPO at a price
band of Rs 950-1,050. Alongside the IPO, the government will
disinvest 10 percent of its stake in the company to state-run
refiners at the IPO price.
At the higher end of the price band, IOC will have to
shell out Rs 1,050 crore to buy the five percent stake.
Post-IPO and disinvestment, the Government`s stake in
the company will decrease from 98.13 percent to 78.5 percent.
Other state refiners, Bharat Petroleum Corp (BPCL) and
Hindustan Petroleum Corp (HPCL), will also pick up 2.5 percent stake in Oil India each.
Oil India is scheduled to get listed on the stock
exchanges on September 30.