OilMin gung-ho on plans to raise Rs 2kcr from Oil India OFS

CNBC-TV18's Nayantara Rai reports, quoting sources, that the government is planning to raise about Rs 2,000 crore from the offer-for-sale (OFS) issue of Oil India.

The government has already conducted roadshows regarding the divestment of stake in Oil India and the last leg of the roadshow in the US will conclude by January 11. Sources indicate that the Oil India OFS issue could be launched on any day after January 15.

Investors have raised grave concerns on the government throwing a surprise in the form of an increased subsidy burden on Oil India in the fourth quarter. Sources in the oil ministry sources have indicated similar concerns and doubts in the market have put the Oil India stock under pressure.

Though the oil ministry was not in favour of any more disinvestment, it was encouraged by the successful sale of sale in National Mineral Development Corporation (NMDC). The oil ministry is quite confident that the Oil India OFS issue will be successful provided it is offered at a discount.