Govt selects 5 bankers to manage IOC stake sale

At present, the government holds 68.57% stake in IOC

Finance Ministry has shortlisted five merchant bankers, including Citibank and Nomura, for disinvestment of 10 per cent stake in Indian Oil Corporation (IOC), which could fetch the exchequer about Rs 9,500 crore.

As many as 10 merchant bankers had made a beeline for managing IOC stake sale and the disinvestment department has shortlisted five from them.

Besides Citibank and Nomura, others who have been shortlisted include Deutsche Bank, Kotak Bank and J M Financial, sources said.

At present, the government holds 68.57 per cent stake in IOC.

At the current market price, sale of 24.27 crore shares, or 10 per cent stake, would fetch the government around Rs 9,500 crore.

The stake sale would also help disinvestment department to inch towards the PSU stake sale target of Rs 69,500 crore set for this fiscal.

Due to volatile market conditions, the government has been able to sell stake in two PSUs this fiscal to raise over Rs 3,000 crore.

The disinvestment department has its pipeline ready for over two dozen PSUs, including ONGC, NMDC and Nalco.

Besides, it is planning to sale 10 per cent stake in Coal India.