The government hopes to rake in about Rs 2,400 crore through divestment of its holding in Indian Oil Corporation (IOC) at an expected price of Rs 600 per share. It holds 10 per cent or 40 million shares in the corporation.
So far, the government has not taken a decision on the GDR-domestic mix in the disinvestment. This, according to official sources, will depend on the market conditions prevailing at the time of divestment.
The government had initially planned to divest in November. This, however, may be postponed if the market conditions are not conducive.
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Market sources say that if the divestment has to be conducted in November, the government will have to decide soon. The government would require close to a month for road shows as well.
Therefore, sources say, the government will have to issue a divestment notice within a week if it plans for November. Any further delay will push the selloff to February as December and January are lean months for western countries.
IOC officials say they are ready with the office circular and also its documentation. The corporation has also fortified its position by taking legal advice on all aspects of divestment.
However, it is learnt that IOC is not keen on November as it feels that around that time the markets, both domestic and global, are going to be depressed.
It says that the government need not rush with the divestment since the corporation is capable of looking after its financial requirements for expansion and modernisation. IOC is confident of being able to meet 85 per cent of its financial needs through internal generation and the balance through loans and debt.