IOC up nearly 6% as EGoM okays share sale to ONGC, OIL

MUMBAI: The Indian Oil Corp scrip today rose by nearly 6 per cent following the approval of a ministerial panel to sell 10 per cent government stake in in the company to ONGC and OIL.

IOC's shares ended 5.87 per cent higher at Rs 224.50 on the BSE. During the day, the stock surged 7.26 per cent to Rs 227.45.

On the NSE, it settled 5.77 per cent up at Rs 224.50. Shares of ONGC ended 0.17 per cent higher, while OIL fell by 0.92 per cent at the BSE.

In the first disinvestment through block deal this fiscal, a ministerial panel yesterday approved selling 10 per cent government stake in IOC to ONGC and OIL to rake in Rs 4,800-5,000 crore.

An Empowered Group of Ministers headed by Finance Minister P Chidambaram yesterday decided to sell 24.27 crore shares or 10 per cent government stake in the company to Oil and Natural Gas Corp (ONGC) and Oil India Ltd.

The stake sale will happen sometime next week after the boards of ONGC and OIL decide, Oil Secretary Vivek Rae said yesterday.