Nod To Sell Pie In Ongc, Gail Lift Ioc

Shares of Indian Oil Corporation (IOC) jumped to a 52-week high of Rs 265, before settling 9.13 per cent higher at Rs 241.95, on reports that the Centre is likely to approve the sale of half the company's holding in ONGC and Gas Authority of India (GAIL).

Stocks of the largest Indian and state-run oil refiner notched up volumes of 27.12 lakh shares on the Bombay Stock Exchange.

The volume of trade at the National Stock Exchange was 49.76 lakh shares. Between August 12 and today, IOC shares climbed 20 per cent from Rs 201.45.

According to reports, the government plans to offload 50 per cent of IOC's holding in GAIL and ONGC -- 4.8 per cent in ONGC and 2.4 per cent in GAIL -- in the open market.

Earlier, it was reported that IOC intended to sell its entire holding in ONGC and GAIL. However, ONGC raised objections about the low valuation of the scrip and compelled IOC to sell only 50 per cent of its holding.

As on March 31, 2001, IOC held 9.6 per cent, or 13.71 crore shares in ONGC, and 4.8 per cent, or 4.08 crore shares in GAIL.

At current prices, IOC is likely garner Rs 2,466 crore from the sale of its stake in ONGC, and Rs 144.53 crore from the sale of its stake in GAIL.