Govt divests 10% in OIL for 2,200 cr

MUMBAI: State-run refiners Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum on Tuesday picked up the government���s 10% stake in PSU explorer Oil India (OIL) for about Rs 2,200 crore.

���A total of 2.14 crore shares have been sold to the refiners,��� OIL director (finance) TK Ananth Kumar said.
As part its divestment plans, the government had put on offer 10% of its stake in the company to state refiners.
���The funds have already been transferred into government accounts. About Rs 2,200 crore has been received for the 10% stake,��� Kumar said.

IOC, the nation���s largest refiner, picked up a 5% stake in the mini-ratna company for Rs 1,123.5 crore. BPCL and HPCL picked up 2.5% stake each in OIL for Rs 561.7 crore.

OIL, the nation���s second-largest state-run explorer, last week hit the capital market to raise funds for expansion.
While the company offered 11% fresh equity to the public through the IPO, the government divested 10% of its stake in the company to state-run refiners at the IPO price of Rs 1,050 a share.

The government has fixed the issue price at Rs 1,050 per share, raising a cumulative Rs 4,982 crore through the IPO.
���IOC has bought 1.07 crore shares and HPCL and BPCL have bought 53.5 lakh shares each,��� Mr Kumar said.

Post-IPO and disinvestment, the government���s stake in the company will decrease from 98.13% to 78.5. The initial public offer of OIL, which closed on September 10, was subscribed nearly 31 times, generating demand for shares worth over Rs 85,576 crore.

Oil India is scheduled to be listed on the stock exchanges on September 30.