Indian government offers Oil India stake at 5.6% discount

The government has set a floor price of Rs510 for today’s sale of a 10% stake in the oil and gas producer, implying a deal size of at least $574 million.
<div style="text-align: left;">
Oil India’s R&D centre
</div>
<div style="text-align: left;"> Oil India’s R&D centre </div>

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...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222