News Brief | February 2013
Govt may restart IOC stake sale
The government may restart the process of divesting its stake in Indian Oil Corporation following the considerable rise in the share price of oil companies in recent trading sessions. In 2010, the government deferred its plan to offload 10 percent (of its 78.92 percent) stake in Indian Oil because of poor market condition. Following the recent decision by the government to de-regulate diesel pricing partially, the share prices of oil marketing firms and also oil explorers have been rising. The government is expected to take advantage of the present rally in these stocks and may offload its stake in IOC in the next fiscal year, some analysts feel.
Earlier, the oil ministry had expressed its reservation against minority sale of government's equity in oil marketing companies because the market did not reflect their true value due to subsidy issues.