IOC to launch FPO in third-fourth week of Jan

State-owned Indian Oil Corporation today said it expects to launch its follow-on public offer in the third or fourth week of January.

"IOC's follow-on public offer (FPO) would be expected in the third or fourth week of January," Chairman B M Bansal told reporters here.

The government plans to offload 10 per cent of its equity holding in the state-run refiner through the FPO and an equal stake would be diluted by the PSU company. Following the stake sale, the government's holding in IOC would reduce to 64.57 per cent from the existing 78.92 per cent.

IOC's share sale programme is expected to garner close to Rs 20,000 crore.

The company said it has hired six investment banks -- Merrill Lynch, Citigroup, ICICI Securities, Morgan Stanley, SBI Capital and UBS to manage the public offer.

The mega offer is a part of the government's Rs 40,000 crore disinvestment programme this fiscal.

Under the follow-on public offer, the government will divest a 10 per cent stake in the company, translating into 24.27 crore equity shares. In addition, the company would also issue fresh equity equivalent to another 10 per cent stake in the company, amounting to 19 crore shares.

Apart from IOC, the government has lined up stake sales in Hindustan Copper, Manganese Ore India Ltd and SAIL, among other PSUs, this fiscal.