Friday 20 December 2013

Government to divest 10% stake in IOC via open offer

Government is planning to divest 10% stake in Indian Oil Corporation (IOC) via open offer of sale in second week of January 2014. As on September 30, 2013, the promoters' holding in the company stood at 78.92% while institutions and non-institutions held 6.56% and 14.52% stake in the company, respectively.

The Budget had projected divestment proceeds of Rs 54,000 crore in 2013-14, including Rs 14,000 crore from divestment in non-government companies. The government has so far raised only about Rs 3,000 crore from divestment.

The government is finding it difficult to achieve the fiscal deficit target of 4.8% of gross domestic product in 2013-14, mainly on account of slow tax collections.

IOC is the largest oil refining company in India with 65.7mtpa capacity (out of a total of 215mtpa in India). It operates 10 of the 22 refineries in the country.

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