Cabinet may take up 10 IOC disinvestment proposal on Wednesday

The Disinvestment Department has already selected five merchant bankers 8212; Citibank,HSBC,UBS Securities,SBI Capital and J M Financial 8212; to manage the stake sale of the oil major.

Shares of IOC were trading at Rs 200.45,down 5.94 per cent,in afternoon trade on the BSE. At the current market price,the sale of the 19.16 crore shares would fetch Rs 3,840.62 crore to the exchequer.

At present,the government holds a 78.92 per cent stake in IOC.

IOC,the nation8217;s largest refiner,has a market capitalisation of Rs 54,519 crore. It posted a net profit of Rs 5,005 crore in 2012-13,up from Rs 3,954 crore in the previous year.

The company8217;s profit peaked at Rs 10,221 crore in 2009-10. IOC sells fuel at below-market prices,for which it is partially compensated by the government.

The disinvestment target through PSU stake sales in the current financial year is Rs 40,000 crore. So far,it has raised Rs 828 crore through stake sale in MMTC and Hindustan Copper.