Oil India share auction base price set at 5.6 pct discount

Last Updated: Thu, Jan 31, 2013 11:52 hrs

The base price for state-run Oil India Ltd's share sale, to take place on Friday, has been set at a 5.6 percent discount to its share price, the company said, in a deal that will raise about $575 million.

The Indian government will sell a 10 percent stake in Oil India through the auction, as part of its drive to raise 300 billion rupees ($5.6 billion) by selling shares in some state enterprises in the 2012/13 fiscal year to March.

The floor price for the Oil India auction will be 510 rupees a share, as compared to its Thursday closing price of 540 rupees. At the floor price, the government could raise about $575 million through the stake sale.

More from Sify: