Indian Oil divestment decision deferred by EGoM

New Delhi, Jan 9 (IANS) An Empowered Group of Ministers (EGoM) headed by Finance Minister P. Chidambaram Thursday deferred a decision on disinvestment in state-run Indian Oil Corp (IOC).

“The decision on disinvestment has been deferred,” Petroleum Minister M. Veerappa Moily told media persons here after the EGoM meeting.
The Petroleum Ministry itself has been strongly opposing the stake sale. The minister had said that IOC cannot be sold when the scrip is way lower than the 52-week peak of Rs.375 reached on Jan 18 last year.
The IOC share issue was expected by December, while roadshows were held abroad for sale of 10 percent stake estimated to garner about Rs.4,000 crore.
The roadshows in Hong Kong, Singapore and the US drew lukewarm response, while the one planned in Dubai was cancelled.
IOC share prices have fallen nearly 50 percent since the sale idea was first mooted in 2010. The petroleum ministry and IOC have twice approached the finance ministry requesting that the sale offer be put on hold till share prices revive.
The government holds 78.92 percent stake in the oil marketing company.
It has set a total disinvestment target of Rs.40,000 crore for the current fiscal.