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After roadshows in the US and the UK, government will this week hold investor meets in Singapore and Hong Kong for sale of its 10% stake in nation's largest oil firm, Indian Oil Corp (IOC).
"Promotional roadshows were last week held in US and London. They will now be held in Singapore and Hong Kong beginning tomorrow," an official said.
Officials from the Ministry of Petroleum and Natural Gas and the Department of Disinvestment will hardsell the IOC stake sale, which is crucial for meeting government's investment target of Rs 40,000 crore.
The proposed issue of 19.16 crore IOC shares is likely to fetch as much as Rs 3,900 crore at current prices.
At the roadshows last week, IOC was sold to investors as "The Future of India Energy."
In the presentation to investors, it was highlighted that IOC is the largest refiner in the country which has "Strong support from the Government of India" and is "Driven by a Management Team that has Delivered Results."
IOC has 10 refineries with 65.7 million tonnes of crude oil processing capacity, which constitutes 31% of the domestic refining capacity. It has 11,000-plus km of crude oil,
product and natural gas pipelines and a 44% fuel market share. Also, it is the second largest petrochemical firm in the country behind Reliance Industries.
It is expanding its footprint in oil and gas exploration, LNG, wind and solar power besides venturing into nuclear energy to become an integrated energy company, the presentation said.
IOC, it said, is investing $2.077 billion in core business of oil refining and marketing and petrochemicals and has plans to invest $2.448 billion in the next. It has an capital outlay of $2.09 billion for 2015-16 and $2.009 billion for 2016-17.
IOC Chairman R S Butola had just before the US and UK roadshows stated that the department of disinvestment (DoD) may be wanting to assess the market conditions at the roadshows and will take a view on the stake sale based on the response.
The company was of the opinion that the government should not lauch the stake sale now as the company share price is "unduly depressed".
The IOC scrip today closed at Rs 203.15 on the BSE, 46% below the 52-week peak of Rs 375 reached on January 18.
Government holds 78.92% stake in the country's largest oil refiner as on June 30.
Citibank, HSBC and UBS Securities are among the five merchant bankers selected to manage the IOC share sale.
