MUMBAI : Indian Oil Corporation is planning to buy 1crore equity shares / 5 percent stake in Oil India Ltd.Before the P-S-U explorer gets listed on the bourses later this month.IOC Chairman, Sarthak Behuria, said that-' We will be buying 1crore shares of Oil India, but only waiting for the Government to fix the date of purchase' and also added that- The PSU-refiner is likely to shell out Rs 1,100 crore to pick up a 5 percent stake in Oil India Ltd.
Oil India Ltd.- 'the nation's second largest state run explorer', last week hits the capital market to raise fund's for expansion. The Government fixed the issue price of the share at Rs 1,050 per share and raising about Rs 4,982 crore on 14-september-2009,monday.
The public issue of Oil India Ltd., which is closed on September -10, was subscribed nearly 31 time's, generating demand for share's worth over Rs 85,576 crore. The company offered 11 percent fresh equity to the public through the initial public offer at a price band of Rs 950-1,050.
Alongside the IPO(initial public offer), the Government will disinvest 10 percent of it's stake in the company to state run refiners at the IPO(initial public offer) price.
At the higher end of the price band, Indian-Oil-Coporation will have to shell out Rs 1,050 crore to buy the 5 percent stake.
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