(PTI)
State-owned ONGC is likely to sell some of its stake in IOC to institutional investors like LIC to part-fund its over Rs 34,000-crore acquisition of refiner Hindustan Petroleum Corporation Limited (HPCL). Oil and Natural Gas Corporation (ONGC) holds 13.77 per cent stake in India’s biggest refiner Indian Oil Corporation (IOC), which at today’s market price is worth over Rs 27,800 crore. It has another 4.87 per cent stake in GAIL India Ltd worth of Rs 1,600 crore.
“The acquisition of 51.11 per cent government stake in HPCL will be funded through a combination of market borrowing and selling some stake in IOC and GAIL,” a source privy to the development said. Selling stake in the open market may create volatility and so, ONGC is considering selling less than 2 per cent stake in IOC to institutional investors like LIC in block deal, he added.
