Decision On Selloff Mandate Deferred

The group, however, approved the procedure followed by the special task force in shortlisting the merchant bankers for the five-per cent IOC divestment.

Confirming that the government divestment would piggyback on the VSNL GDR issue, sources said the quantum of the company's public offer would be decided at the next meeting of the group. VSNL has been asking for an eight-per cent public floatation to finance some of its capital-intensive projects.

In the case of IOC, the core group discussed the timing of issue, the road shows and the mode of pricing. As in international offerings, the bookbuilding method would be followed in the selloff. The special task force, a sub-committee assisting the core group, had also favoured the reservation of shares for employees in the proposed divestment, in line with Sebi guidelines.

 

IOC had offered 600 shares per employee at a discounted price of Rs 100 in the last round of disinvestment. The sources, however, said no price discounts would be offered this time.

It is learnt that Merryll Lynch and Barclays are among the front runners, though the task force may favour another round of beauty contest to finalise the merchant bankers. The core group has already decided in favour of a 15-per cent domestic offering in case of IOC. The rest will be offered in international markets.