Indian Oil’s refinery in the Indian state of Bihar. Credit: Kendash1987.

The Indian Government is reportedly planning to divest $2bn worth of shares in Oil and Natural Gas (ONGC), Indian Oil (IOC), and Oil India (OIL), in order to meet its divestment target for this year.

Comprising a 5% equity stake in ONGC, 3% in IOC and 10% in OIL, the planned share sale is expected to raise Rs165bn ($2.3bn), economictimes.indiatimes.com reported citing unnamed sources.

The government currently owns a 67.48% stake in ONGC, 56.75% in IOC and 66.13% in OIL.

“The finance ministry is reportedly looking to pursue share sales and buybacks by the state-owned oil firms to push closer to the target.”

The government set a divestment target of Rs800bn ($11.15bn) for this financial year. 25% of the target has so far been realised.

The finance ministry is reportedly looking to pursue share sales and buybacks by the state-owned oil firms to push closer to the target.

Although there is no clarity on the timeframe, the sources revealed that the sale could be launched in a month.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

India is also expected to raise Rs100bn ($1.39bn) from a share buyback programme by the oil firms, according to the publication.

OIL has disclosed in a regulatory filing that it will consider a buyback proposal next week, which is anticipated to raise nearly Rs11bn ($153.35m).

The sources added that ONGC and IOC may respectively buy back shares worth Rs48bn ($669.17m) and Rs40bn ($557.64m).

The boards of the oil companies are expected to soon consider proposals of a buyback.

The government recently sold a 3% stake in public coal mining company Coal India through the offer for sale (OFS) route.