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IOC Wants Diesel Price Freed Before Share Sale

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[India's top state-run refiner, Indian Oil Corp, wants the government to free up diesel prices ahead of a $2-billion-plus share sale, so as to raise the maximum funds from the offer, the firm's chief said on Monday. The sale of a 10 per cent stake by the government, along with the firm's plan to sell an additional 10 percent of fresh shares, should come in January or February, B.M. Bansal told Reuters. The government now holds 78.92 per cent in IOC, which is India's biggest fuel retailer, with a market value of $22.5 billion. In June, India gave autonomy to oil firms to set petrol prices and raised prices of diesel, kerosene and cooking gas. It also decided to free up diesel prices, but gave no time frame to implement the decision. "We hope the government will deregulate diesel prices before the FPO (follow-on public offer)," Bansal told Reuters. "It will help a better valuation." India's oil ministry has approved the sale of a 5 per cent stake in Oil and Natural Gas Co. (ONGC) and 10 per cent in IOC. It has also allowed IOC to raise funds through sale of an additional 10 per cent of the expanded share capital. (Reuters)