40% of IOC employees participates in IOC disinvestment

Nearly 40 per cent of the employees of Indian Oil Corporation (IOC) applied for shares which were reserved for them pursuant to the disinvestment.
A finance ministry statement said IOC employees applied for 53.17 per cent of 1.21 crore shares offered for allotment.
The shares were offered at a floor price of Rs 367.65 and government expects to realise Rs 237 crore.
"This is the highest ever employee participation in disinvestment process of any company post OFS," the statement added.
The floor price is much lower compared to the current market price of Rs 409.50 of IOC shares.
The offer of shares by government to eligible employees of IOC was open from May 2, 2016 to May 10, 2016.

"The employee offer of IOC got unprecedented response from the employees as nearly 40 per cent of the employees participated in the offer," the statement said.

The employee offer was pursuant to the decision of the government to disinvest 10 per cent equity out of its shareholding in IOC. The government had approved that shares may also be allotted to the eligible employees of the company up to a maximum of 0.5 per cent of the paid up equity capital at a discount of 5 per cent.
The government had divested 10 per cent in IOC in August through an offer for sale (OFS) last year which garnered Rs 9,369 crore to the exchequer.

The lowest cut off during the OFS was Rs 387 per share. Accordingly, after 5 per cent discount the offer price for employees was Rs 367.65 per share.