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IOC calls for advisors on ONGC stake sale

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Our Economy Bureau New Delhi
The Indian Oil Corporation (IOC) has invited bids to appoint financial advisors for sale of part of its shareholding in Oil and Natural Gas Corporation (ONGC) and GAIL (India) Ltd.
 
For the sale of up to 20 per cent of its stake in ONGC, Indian Oil has invited bids from Kotak Mahindra, Citi Financials and JM Morgan, company executives said. In addition to these three banks, the SBI Caps-CLSA combine will be asked to submit price bids for up to 50 per cent sale of its stake in Gail.
 
The price bids are to be submitted by next weekend, sources said. About 13 banks and financial institutions had originally expressed interest in advising the company on its stake sale.
 
IOC holds 13.7 crore equity shares or 9.61 per cent stake in ONGC and 4.08 crore equity shares or 4.83 per cent in GAIL. The company board, on December 28, had approved sale of up to 20 per cent of its stake in ONGC and up to 50 per cent in GAIL this fiscal.
 
IOC is expected to raise about Rs 4,000 crore from the divestment of its stake.
 
At today's price, sale of 2.74 crore equity shares of ONGC will fetch Rs 3,450 crore.
 
It will get Rs 565 crore from sale of 2.04 crore equity shares of GAIL.
 
TO CHANGE HANDS
 
  • SBI caps- clsa combine will be asked to submit bids for up to 50 % sale of IOC stake in Gail
  • About 13 banks and financial institutions had originally expressed interest in advising the company on its stake sale
  • Negotiations For the sale of up to 20 per cent stake in ONGC, IOC has invited bids from Kotak Mahindra, Citi Financials and JM Morgan
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    First Published: Jan 28 2006 | 12:00 AM IST

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