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Govt to sell 10% stake in Indian Oil on Monday

This seems to be an opportune moment for the OFS since low crude oil prices are seen as a sentiment booster.

Reporter's Diary

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The government will sell 10 percent stake in Indian Oil through an offer for sale (OFS) on Monday. The government is looking to raise between Rs 9,000 crore and Rs 9,500 crore in the process.

This seems to be an opportune moment for the OFS since low crude oil prices are seen as a sentiment booster.

That and the fact that the government has been given clarity on the FY16 subsidy sharing mechanism, though some concerns remain. The weakness in the rupee will reflect in oil imports.

There is also uncertainty over a possible excise hike in petrol and diesel if crude oil prices breach the 40 dollar level on the downside.

Divestment secretary Aradhana Johri says these calls are taken based on where the market stands and the stock price and the appetite of the market.

IOC stock price

On August 21, 2015, Indian Oil Corporation closed at Rs 394.45, down Rs 2.8, or 0.7 percent. The 52-week high of the share was Rs 465.40 and the 52-week low was Rs 307.00.


The company’s trailing 12-month (TTM) EPS was at Rs 37.83 per share as per the quarter ended June 2015. The stock’s price-to-earnings (P/E) ratio was 10.43. The latest book value of the company is Rs 279.95 per share. At current value, the price-to-book value of the company is 1.41.

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