With overseas investor roadshows drawing poor response,oil minister M Veerappa Moily today said the disinvestment of 10 per cent stake in nations largest oil firm,Indian Oil Corp (IOC) should happen in an appropriate market.
The question is market has to behave properly. We dont want to go to the market where we are not going to get the right price, he told reporters here.
IOC scrip closed at Rs 199.25 on the BSE,nearly 47 per cent below the 52-week peak of Rs 375 reached on January 18. Investors at promotional roadshows in the US,the UK and Singapore questioned the timing of the stake sale as there is no clear roadmap yet to address the lingering fuel subsidy issue.
Moily,however,said that the decision about timing of the disinvestment would be taken by his ministry and the ministry of finance together after due consultations.
It (disinvestment) will happen at appropriate time. IOC today is Indias number one company and I dont want that kind of credibility and stability of IOC to be shaken, he said. Our companies interest will also have to be taken into consideration (when deciding on disinvestment), he added.
Moily said his ministry would cooperate fully with the finance ministry on disinvestment of IOC.
The sale of 19.16 crore IOC shares at the current price would fetch the government less than Rs 3,900 crore.