Selloff differences

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By The Telegraph Online
  • Published 11.11.13

New Delhi, Nov. 10 (PTI): Differences have cropped up between the government and Indian Oil Corporation over the proposed selloff in the state-run refiner.

The finance ministry wants to sell 10 per cent of the government’s stake in IOC by the end of this month even as the refiner is not in favour of the move as it feels the current share prices are undervalued.

“We want to push the IOC stake sale first, within November itself. This will pave the way for divestment of other oil sector PSUs such as Engineers India,” a senior finance ministry official said.

“We feel the prices are unduly depressed at the moment, which may be a concern for investors,” IOC chairman R. S. Butola had said last week.

Last month, the department of divestment put off overseas roadshows for the IOC stake sale following opposition from the company and the petroleum ministry, which cited poor market conditions. The roadshows were planned in London, US, Singapore, Hong Kong and Dubai.