Indian Oil gains on government nod for stake sale to ONGC, Oil India

A ministerial panel approved selling 10% government stake in Indian Oil to ONGC and OIL India.

Indian Oil Corporation has surged 4% to Rs 220 after a ministerial panel approved selling 10% government stake in the oil marketing company to Oil and Natural Gas Corp (ONGC) and OIL India.

ONGC and Oil India Ltd will meet within a week to consider buying a stake in Indian Oil. The Government proposes to offload 242.7 million shares in Indian Oil and garner Rs 4,800-5,000 crore to meet its divestment target.

The sale will be as per SEBI's rules for block deal which says the rate should be 1% higher or lower than previous day's closing price; the PTI report suggests quoting Oil Secretary Vivek Rae.
 

Shares of Indian Oil has opened at Rs 214 and touched high of Rs 222 on the NSE. A combined 650,000 shares changed hands on the counter till 0950 hours on the NSE and BSE.

Oil India was trading lower by 1% at Rs 473, after hitting low of Rs 465 in intra-day trades, while ONGC up 1% at Rs 289 has recover nearly 2% from day’s low of Rs 284 touched in early morning deals on the NSE.