The Indian government has set a floor price of Rs510 per share for its sale of a 10% stake in Oil India that will take place today. The floor price translates into a 5.6% discount versus yesterday’s close and indicates a minimum deal size of Rs30.66 billion $574 million assuming that it sells all the shares.
The sell-down will be done through an offer for sale OFS, an auction-like method that was pioneered in early March last year with a $2.5 billion government sell-down in ONGC. That first deal turned out to be quite disappointing, but also exposed the potential flaws with the method and showed the government...
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