Oil Min protests IOC's divestment quoting low share price

Oil ministry formally protests against a 10 percent Indian Oil Corporation (IOC) divestment, warns the exchequer will lose over Rs 4,200 crore if it were to go ahead with the stake sake now reports CNBC-TV18's Nayantara Rai.

The finance ministry's plans of raising nearly Rs 4,000 crore from a 10 percent divestment in IOC received a setback with the nodal petroleum ministry taking a strong stance against the move, and for the first time quantifying a notional loss for the exchequer. Also read: Govt pushes for IOC divestment despite poor response Sources say in a strongly worded two page letter to the department of disinvestment, the oil ministry last week claimed a loss of RS 4225 crore to the government if it were to go ahead with the IOC stake sale. The quantification of a notional loss may make it difficult to get the final stamp of approval from the empowered group of ministers. Sources add the finance ministry now sought the written views of the merchant bankers. It maybe recalled IOC received a poor response in its international roadshows, though the oil secretary Vivek Rae described it as "not very bullish". The Dubai leg had to be cancelled and sources say most investors in Singapore and Hong Kong questioned the timing of the divestment. The IOC share price languishing at lifetime lows was another concern raised by investors.