Oil India stake sale oversubscibed

Last Updated: Fri, Feb 01, 2013 12:00 hrs

New Delhi, Feb 1 (IANS) The Oil India (OIL) stake sale was oversubscribed Friday before closure of markets, signalling a minimum earning of Rs.3,100 crore for the government from the divestment.

The OIL auction got bids for over 7.50 crore shares as at 3 p.m. against an offer of over 6.01 crore, according to National Stock Exchange (NSE) data.

The indicative price, that is the weighted average price of all valid bids, was Rs.518.04 per share and the government would earn Rs.3,100 crore at this price.

The government had Thursday fixed the floor or minimum price for the OIL share auction through offer for sale (OFS) route at Rs.510 a share.

This represents a 5.41 percent discount to its current market rate.

The government holds 78.43 percent stake in OIL, which would come down to 68.43 percent after disinvestment.

The company got listed on stock exchanges in 2009.

The government has so far raised Rs.69 billion ($1.25 billion) through its disinvestment programme.

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