Press Esc to close
Sunday 22 January 2017
News updated at 8:24 AM IST
Weather
Max: 28.9°C
Min : 15.3°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
Youngstres and Students during the protest to Lift ban on jallikattu and impose ban on PETA...

Youngstres and Students during the protest to Lift ban on jallikattu and impose ban on PETA...

Hot air balloons fly during the 39th International Hot Air Balloon Week in Switzerland...

Hot air balloons fly during the 39th International Hot Air Balloon Week in Switzerland...

An Iranian firefighter removes debris of the Plasco building which was engulfed by a fire...

An Iranian firefighter removes debris of the Plasco building which was engulfed by a fire...

Indian film director and classical dancer, Aishwarya Rajinikanth Dhanush at the Jaipur...

Indian film director and classical dancer, Aishwarya Rajinikanth Dhanush at the Jaipur...

The cast of Kung Fu Yoga, from left, Miya Muqi, Disha Patani, Jackie Chan, Amyra Dastur...

The cast of Kung Fu Yoga, from left, Miya Muqi, Disha Patani, Jackie Chan, Amyra Dastur...

Women take part in the #IWillGoOut rally, to show solidarity with the Women's March in Washington...

Women take part in the #IWillGoOut rally, to show solidarity with the Women's March in Washington...

Archaeological Survey of India workers conducting restoration work at Taj Mahal in Agra...

Archaeological Survey of India workers conducting restoration work at Taj Mahal in Agra...

Military Police Daredevils perform during a rehearsal for the Republic Day parade at Rajpath...

Military Police Daredevils perform during a rehearsal for the Republic Day parade at Rajpath...

An Olive-backed Sunbird feeds its two babies insects in their nest in Klang, Selangor, Malaysia...

An Olive-backed Sunbird feeds its two babies insects in their nest in Klang, Selangor, Malaysia...

Winner of Oriflame Face of North-East-2017 Michelle Kynta (M), 1st runner up Anjusha Saikia...

Winner of Oriflame Face of North-East-2017 Michelle Kynta (M), 1st runner up Anjusha Saikia...

Like us on Facebook

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