India plans to sell off 10% of explorer OIL

By Nishant Ugal

 27 September 2012 22:59 GMT

The Indian government has set the ball rolling on a plan to sell a 10% slice of leading state-owned explorer Oil India (OIL).

Bids have been invited by the Indian Department of Disinvestment from merchant bankers to assist the government in the ­disinvestment process.

OIL presently commands a market capitalisation of $5.5 billion in the Indian market.

The shares in OIL would be sold through an offer for sale via the country’s stock exchanges.

Earlier this month, the Indian Cabinet Committee on Economic Affairs (CCEA) approved disinvestments in four public sector units, including OIL, from which it plans to raise about $2.8 billion.

The Indian government presently holds about 78.4% equity in OIL.

The merchant banks can ­express their…

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