The government is planning to sell shares worth over $2 billion in state-owned oil firms – Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India Ltd (OIL) – the Economic Times reported citing sources familiar with the development.
With over four months remaining for the current financial year to end, the government may push hard to achieve its disinvestment target of Rs 80,000 for FY19. As of now only a fourth of the disinvestment target has been met, the business daily quoted finance ministry sources as saying.
According to the ET report, govt may sell about 5 per cent equity stake in ONGC, 3 per cent in Indian oil and 10 per cent in Oil India. However, the quantum could vary at the time of actual offer depending on investor sentiment and buyback plan.
Based on Friday’s closing price, a 5 per cent stake in ONGC was worth about Rs 10,000 crore while a 3 per cent stake in IOC and 10 per cent stake in Oil India was worth about Rs 6,500 crore. Read More