Indian Oil Corporation (IOC) has refused the offer to buy back shares, as part of Government’s 10% disinvestment plan, on account of huge debt and no extra money to spare. With this development, the Department of Disinvestment (DoD) would float a Cabinet note next month in which it will propose 10% government stake sale in the oil company via offer for sale (OFS) route. The Center plans to offload 10% stake in the nation’s largest oil firm to raise around Rs 6,000-7,000 crore.
At the end of April-December 2012, IOC had a cash balance of Rs 938 crore and free reserves of over Rs 49,000 crore. However, its borrowings stood at over Rs 94,000 crore.
IOC is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.
| Company Name | CMP |
|---|---|
| Reliance Industries | 1435.70 |
| Indian Oil Corp. | 144.70 |
| BPCL | 302.85 |
| HPCL | 387.00 |
| MRPL | 167.90 |
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