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Indian Oil share sale complete

New Delhi, March 14: ONGC and Oil India today bought the government’s 10 per cent stake in PSU refiner Indian Oil Corporation for Rs 5,340 crore.

In off-market transactions, ONGC and Oil India bought a 5 per cent stake each at Rs 220 per share.

Officials in both the state-owned upstream firms confirmed the development, which is part of the government’s strategy to meet the disinvestment target for this fiscal.

An empowered group of ministers, headed by finance minister P. Chidambaram, had on February 28 decided to sell the IOC stake at a discount of 10 per cent through an off-market deal.

ONGC’s holding in Indian Oil has now increased to 13.77 per cent from 8.77 per cent.

Oil India did not previously hold any stake in the state-owned refiner.

After the disinvestment, the government shareholding in IOC has come down to 68.92 per cent from 78.92 per cent.

The stake sale has doubled Centre’s disinvestment proceeds for this fiscal to Rs 10,434 crore.

The IOC scrip today settled at Rs 269.20, down 5.20 points, or 1.90 per cent, on the BSE.

 
 
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