Petroleum and Natural Gas Minister M Veerappa Moily on Friday said that the decision on divesting shares at Indian Oil Corporation Ltd would be taken at an appropriate time.
“The market has to behave properly. We do not want to go to the market in a way where were going to get the right price. This is a matter where both the Finance Ministry and our Ministry will together take a call,” Moily told media persons.
He further explained, “We will take at appropriate time; market should help us. IOC is an important Fortune 500 country. I do not want the credibility and stability of IOC to be shaken.”
Last month, global roadshows were held for sale of 10 per cent stake in the country's largest refiner and oil marketing company. It may fetch about Rs 4,000 crore.
However, investors raised concerns on the subsidy burden faced by IOC.
With just four months to go for the fiscal year, IOC stake sale is important to achieve disinvestment target of Rs 40,000 crore.
“They (Finance Ministry) are anxious because they have a target. But, we have to understand the market conditions,” Moily said.
The issue was expected to hit the market by December. The Government holds 78.92 per cent stake as on June 30.
Citibank, HSBC and UBS Securities are among the five merchant bankers selected to manage the IOC share sale.
IOC share closed 1.72 per cent lower at Rs 199.45 on BSE on Friday.
siddhartha.s@thehindu.co.in