The government has cleared a proposal to divest 10% stake in state-run Oil India, a move which would fetch it a sum of around Rs 3000 crore. This disinvestment will take place on February 1 through offer for sale (OFS) route. The decision for the same was taken at a meeting of the Empowered Group of Ministers (EGoM), headed by Finance Minister P. Chidambaram on January 30, 2013.
It has been reported that EGoM, has fixed a floor price of about Rs 500, which is at the discount of the current market price. It had offered a discount of 42% discount in the case of Hindustan Copper and 7.6% for mining firm NMDC.
Last week, EGoM had deferred its decision on OIL stake sale after potential investors raised some qualms over the subsidy-sharing policy of the government. The government currently holds 78.43% stake in the company, which would come down to 68.43%, after disinvestment. The stock has grabbed many investors’ eye balls, ever since the government decided on partial decontrol of heavily subsidised diesel prices, a move that could mean OIL having to pitch in lesser subsidy.
| Company Name | CMP |
|---|---|
| ONGC | 283.95 |
| Oil India | 470.10 |
| Jindal Drilling&Inds | 540.15 |
| Deep Industries | 476.90 |
| Asian Energy Service | 306.05 |
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