New Delhi, Sept. 5: The government has invited bids from investment banks by September 19 to act as advisers for the sale of the government’s remaining 26 per cent stake in oil retailer IBP Co Ltd.
A notice on the privatisation ministry’s website says, “The government of India intends to disinvest its remaining stake of 26 per cent of the equity shares of IBP through a domestic offer through the book building process.”
The government had finalised the strategic sale of 33.58 per cent of IBP’s equity out of the government’s holding of 59.58 per cent in February 2002. The total paid-up equity of the company is Rs 22.15 crore out of which government holds shares of Rs 13.20 crore.
“Expressions of Interest (EOIs) are invited...to act as coordinator-cum-adviser and to assist and advise the government in this process.”
A part of the government’s stake in IBP was earlier bought by state-run Indian Oil.
IBP is engaged in retail marketing of various petroleum products, manufacturing and marketing of industrial explosives and cryo-vessels for industrial and biological applications. Unlike other oil companies in the public sector, it does not own any refining capacity and markets products of other refineries.