IOCL slips in volatile trade

Indian Oil Corporation fell 1.39% to Rs 373 at 10:33 IST on BSE after the government completed divestment of 10% stake through the stock exchanges mechanism yesterday, 24 August 2015.

Meanwhile, the S&P BSE Sensex rose 156.79 points or 0.61% at 25,898.35

On BSE, so far 3.68 lakh shares were traded in the counter as against average daily volume of 2 lakh shares in the past one quarter.

The stock saw high intraday volatility. The stock fell as much as 0.7% at the day's high of Rs 375.60 so far during the day. The stock fell as much as 2.57% at the day's low of Rs 368.50 so far during the day. The stock had hit a record high of Rs 465.40 on 24 July 2015. The stock had hit a 52-week low of Rs 307 on 13 February 2015.

The stock had underperformed the market over the past one month till 24 August 2015, sliding 17.29% compared with 8.43% fall in the Sensex. The stock, however, outperformed the market in past one quarter, gaining 8.43% as against Sensex's 7.93% decline.

The large-cap company has equity capital of Rs 2427.95 crore. Face value per share is Rs 10.

The finance ministry yesterday, 24 August 2015, announced that despite adverse market conditions, the Offer for Sale (OFS) for divestment of Government of India's 10% stake in Indian Oil Corporation (IOCL) through the stock exchanges mechanism was oversubscribed. The institutional investors' portion was subscribed 143% and the retail investors' portion was subscribed 18%. With total subscription of approximately Rs 11107 crore, the OFS was oversubscribed by 18%. The OFS was completed in a single trading session yesterday, 24 August 2015.

With this disinvestment, the Government of India's take in IOCL will come down to 58.57%.

IOCL's net profit surged 155.1% to Rs 6435.70 crore on 19.7% decline in total income to Rs 102141.77 crore in Q1 June 2015 over Q1 June 2014.

IOCL is India's flagship national oil company, with business interests that straddle the entire hydrocarbon value chain - from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas as well as marketing of natural gas and petrochemicals.

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