Govt selects five bankers to manage IOC stake sale

NEW DELHI, July 13 (PTI): Citibank, HSBC and UBS Securities are among the five merchant bankers selected to manage the sale of 10 per cent of the government's stake in Indian Oil Corporation (IOC).

The other bankers selected are SBI Capital and J M Financial, sources said, adding that as many as 17 bankers made presentations today before the disinvestment department.

Shares of IOC closed at Rs 221.90, up 1.46 per cent over previous close on the BSE. At the current market price, the sale of the 190.16 million shares would fetch Rs 42.52 billion to the exchequer.

At present, the government holds a 78.92-per cent stake in IOC. The finance ministry had in May moved a draft cabinet note for the disinvestment in IOC through an offer for sale.

IOC, the nation's largest refiner, has a market capitalisation of Rs 538.76 billion. It posted a net profit of Rs 50.05 billion in 2012-13, up from Rs 39.54 billion in the previous year.

The disinvestment target through PSU stake sales in the current financial year is Rs 400 billion.
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