FIVE BANKERS SELECTED FOR IOC STAKE SALE
The government has selected five merchant bankers, including Goldman Sachs and Citigroup, to manage the government’s 3% stake sale in IOC which could fetch about ₹6,000 crore to the exchequer.
The other bankers who have been selected by the Department of Investment and Public Asset Management (DIPAM) for managing the stake sale are Deutsche Equities, SBI Capital Markets and ICICI Securities, sources said. As many as 10 merchant bankers had made presentations before the DIPAM yesterday, out of which five were selected.
Other merchant bankers who were vying for the job include Axis Capital, Kotak Investment, Nomura Financial, Edelweiss Financial and IDFC Bank.
The government currently holds 58.28% stake in Indian Oil Corporation (IOC). It plans to sell 3% stake in the nation’s largest oil retailer through an offer for sale. Shares of IOC were trading at ₹419.05, down 4.65% in morning trade on the BSE.
The timing of the IOC share sale has not been decided as yet and a final call will be taken after taking into account market conditions, people with knowledge of the matter said.
The government had last sold 10% stake in IOC at ₹387 per share in August 2015 and raised ₹9,369 crore. IOC reported an 85% jump in January-March quarter net profit at ₹3,720.62 crore on higher refining margin and inventory gains.
So far in the current fiscal, the government has raised ₹1,200 crore through sale of 9.2% stake in NALCO and another ₹1,200 crore through initial public offering of HUDCO.