IOC offer for sale likely next month, stock tanks 4%

State-owned Indian Oil Corporation (IOC) dropped more than 4 percent in late morning trade Wednesday on the news that its offer for sale (OFS) is likely to be held next month, reports CNBC-TV18 quoting sources.

It is learnt that finance ministry is in the process of appointing bankers for the oil retailer's OFS.

The government holds 78.92 percent stake in the company while ONGC has 8.77 percent stake and LIC holds 2.86 percent as of March 2013.

This may be the third OFS after MMTC and Hindustan Copper . In June, the government raised Rs 568 crore by selling 9.33 percent stake in MMTC. The 3.48 crore shares offer for sale of Hindustan Copper opened today , through which the government aimed to raise around Rs 240-250 crore.

At 11:58 hours IST, Indian Oil Corporation shares down -4.14 percent to Rs 226.30 on the BSE