Oil India stake sale floor price to be Rs.510 per share

Last Updated: Thu, Jan 31, 2013 15:20 hrs

New Delhi, Jan 31 (IANS) The floor or minimum price per share for the government's sale of its 10 percent stake in Oil India (OIL) has been fixed at Rs.510, the company said Thursday.

In a regulatory filing to Bombay Stock Exchange, OIL said: "The floor price for the sale in terms of the SEBI OFS (offer for sale) guidelines shall be Rs.510 per equity share of Oil India Ltd (the floor price)."

This represents a 5.41 percent discount to its current market rate, while the proposed sale of 60.1 million shares would fetch Rs.3,065 crore ($567 million) to the exchequer.

The stake sale through the OFS route, decided by an Empowered Group of Ministers (EGoM) meeting on Wednesday, is to take place Friday.

The government now holds 78.43 percent stake in OIL, and it would come down to 68.43 percent after disinvestment. It has so far raised Rs.69 billion ($1.25 billion) through its disinvestment programme.

OIL shares closed Thursday at Rs.539.20, up 2.29 percent over previous close on the BSE.

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