(PTI)
State-owned Oil and Natural Gas Corp (ONGC) has got approval from the government for selling its stake in IOC and GAILto help fund the Rs 36,915 crore acquisition of HPCL. ONGC holds 13.77 per cent stake in nation’s biggest refiner Indian Oil Corp (IOC), which at today’s trading price is worth over Rs 26,200 crore. It also holds 4.86 per cent stake in gas utility GAIL India Ltd, which is worth over Rs 3,847 crore.
Top sources with direct knowledge of the issue said the government gave ONGC nod to sell its shareholding in IOC and GAIL earlier this month but the company is waiting for the right price to offload the shares. For the moment ONGC is funding the Rs 36,915 crore acquisition of government’s 51.11 per cent stake in oil refining and marketing firm Hindustan Petroleum Corp Ltd (HPCL) from the about Rs 12,000 crore cash it has and short- term borrowing.
