Indian Oil OFS – Floor price fixed at Rs 387

Indian Oil Corporation Limited (IOC) would see an offer for sale from the government of 10% of the equity or 24,27,65,248 equity shares happening on Monday the 24th of August 2015. The floor price has been fixed at Rs 387. The closing price as of Friday the 21st August was Rs 394.45. The discount at which the floor price is fixed is Rs 7.45 or 1.89% to the closing price.

20% of the quantity on offer would be reserved for retail investors who would be allowed to bid for cut-off and also be entitled to a 5% discount. The fortunes of the OMC’s (Oil marketing companies) have undergone a sea change after the government has deregulated the industry and allowed companies to charge market prices. The fall in crude oil prices which are at a 6 year low has helped in a great way. Currently there is a subsidy element only in the case of kerosene and LPG cylinders. Petrol and diesel are sold at market prices.

Investors should look at the issue and invest taking advantage of the retail discount. The issue is large and would garner about Rs 9,300 crs for the government.

Both comments and pings are currently closed.

Comments are closed.

Subscribe to RSS Feed Follow me on Twitter!