The Government of India has decided to sell 10% of its stake in the country’s biggest oil company.
The Cabinet Committee on Economic Affairs confirmed it has approved the proposal of disinvestment in the Indian Oil Corporation Limited (IOCL) in a statement.
After the transaction, the Government of India’s shareholding in the company would come down from 78.92% to 68.92%.
The move is believed to be part of the Government’s programme to raise Rs.400 billion in the fiscal year until March 2014 by selling shares in state-run companies.
Reports claim the 10% stake is valued at Rs 3,750 crore at the current market price and the energy giant’s shares have declined by 4.6% since the announcement by the Government.