Govt seeks EoI for IOC stake sale

The government on Wednesday initiated the share sale process of Indian Oil Corporation asking merchant bankers to express interest for managing the disinvestment, which could fetch over Rs 6,800 crore to the exchequer.

"The Government is considering to disinvest 10 per cent paid-up equity capital of the company (IOC) through OFS of shares by promoters through the stock exchanges," Finance Ministry said, while inviting Expression of Interest (EoI) for appointing merchant bankers.
Last month, the Department of Disinvestment had moved a draft Cabinet note for selling 24.27 crore or 10 per cent shares in IOC through an offer for sale (OFS). The government holds of 78.92 per cent in the country's largest refiner. At today's closing price of Rs 282.15 apiece, the share sale could fetch over Rs 6,800 crore to the exchequer.

The merchant bankers would be advising the government on the timing and the modalities of the OFS, structure the OFS, conduct domestic and international road shows to generate interest amongst prospective investors.

The government would appoint up to five merchant bankers with experience in public offerings to manage the share sale.

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