Union Cabinet gives nod to 10% stake sale in Indian Oil Corporation (IOC)
The Union Cabinet has given nod to the proposal to divest 10% government stake in Indian Oil Corporation (IOC). The move expected to fetch around Rs. 3,750 crore to the exchequer at the current market price. Currently, the government controls 78.92% stake in IOC.
IOC is India’s largest oil refiner and has a market capitalization of Rs. 54,519 crore. It posted a net profit of Rs. 5,005 crore in 2012-13, up from Rs. 3,954 crore in 2011-12. IOC sells fuel at below-market prices, for which it is partially compensated by the government.
The government has set a disinvestment target through PSU stake sales in the current financial year is Rs. 40,000 crore. So far, it has managed to garner only around R929 crore through stake sale in MMTC, Hindustan Copper and National Fertiliser.