Press Esc to close
Saturday 27 August 2016
News updated at 8:17 AM IST
Weather
Max: 27.6°C
Min : 21°C
In Bengaluru
Sunny day

Govt eyes Rs 3k cr from 10% stake sale in Oil India

New Delhi:Jan 31, 2013,DH News Service

Divestment to kick in on Friday

Hoping to cash in on the favourable market conditions, the government on Wednesday decided to offload 10 per cent of its stake in Oil India Limited, the upstream petroleum exploring company on February 1.

The government is expected to raise roughly Rs 2,500-3,000 crore from the sale that will bring it closer to its divestment target of Rs 30,000 crore this fiscal year. So far, the divestment of public sector companies has garnered Rs 6,900 crore.

"Proposal has been cleared. Disinvestment will take place on February 1 through OFS route. Roughly we will raise Rs 2,500-3,000 crore," Petroleum Secretary G C Chaturvedi said after a meeting of the Empowered Group of Ministers, headed by Finance Minister P Chidambaram.

OFS or direct offer is a public invitation by the issuing company itself. The offer can be made at a price that is fixed in advance or it can be by tender where investors state the price they are prepared to pay.

"The price has been determined. It has been communicated to stock exchanges," Petroleum Minister Veerappa Moily told reporters after the EGoM meeting.

The government currently holds 78.43 per cent stake in OIL. Analysts say, the recent rally in stocks may have encouraged the government to line up divestment starting with OIL in the second round.

The divestment department has also lined up NALCO (National Aluminium) and Steel Authority of India ( SAIL) for disinvestment in the current financial year, the stake sale in NTPC too is slated for the last week of February.

The Sensex has topped the 20,000 mark for the first time in two years, gaining a little over 2,800 points or 16.5 per cent since P Chidambaram became finance minister in August. A series of recent moves such as postponement of the General Anti-Avoidance Rules and loosening of the price control on diesel have helped improve the market sentiment.


Go to Top

Photo Gallery
A view floods at the banks of Ganga River at Daraganj area in Allahabad on Friday...

A view floods at the banks of Ganga River at Daraganj area in Allahabad on Friday...

An ariel view of Mysuru Palace on Friday...

An ariel view of Mysuru Palace on Friday...

Bollywood actress Chitrangada Singh and Regional Director Alok Srivastav launching Gionee phone...

Bollywood actress Chitrangada Singh and Regional Director Alok Srivastav launching Gionee phone...

Citizens hold placards and raise slogans to protest against the killing of civilians...

Citizens hold placards and raise slogans to protest against the killing of civilians...

A boy and a dog enjoy the shower after a BMC pipeline burst...

A boy and a dog enjoy the shower after a BMC pipeline burst...

Chief Minister V Narayanasamy accompanied by his cabinet colleagues pays floral tribute...

Chief Minister V Narayanasamy accompanied by his cabinet colleagues pays floral tribute...

First Batch of 6 elephants arrives to Mysuru Palace ahead of Dasara celebrations at Mysuru...

First Batch of 6 elephants arrives to Mysuru Palace ahead of Dasara celebrations at Mysuru...

Shramjeevi sanghatana tribal community protest against BJP goverment's Maharashtra Protection...

Shramjeevi sanghatana tribal community protest against BJP goverment's Maharashtra Protection...

Digital Playground at Arge Helios apartments, Hennur Bagalur Road...

Digital Playground at Arge Helios apartments, Hennur Bagalur Road...

Children dressed Radha Krishna on the occasion of Sri Krishna Janmashtami celebrations...

Children dressed Radha Krishna on the occasion of Sri Krishna Janmashtami celebrations...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523