In an interview to CNBC-TV18, Sudhir Vasudeva, CMD, ONGC spoke about the EGoM approving a 10 percent government stake sale in Indian Oil Corp (IOC) to ONGC and OIL and the road ahead.
Below is a verbatim transcript of the interview
Q: We just have the news that the Empowered Group of Ministers (EGoM) has approved a crossholding route for IOC's divestment and we understand ONGC and Oil India will be picking up stake. Could you confirm the news and how this is going to be worked out? Will it be 50:50 ratio or 60:40 ratio?
A: I am not privy to the discussion which has taken place in EGoM, but my understanding is probably it could be 50:50.
Q: Could you take us through the timeline in which this block deal will be completed?
A: It would be as early as possible. I am not aware of what the timeline which are being discussed, but since the Government of India needed this disinvestment of IOC to be done and this fiscal it has to be in between the se two months of February and March.
Q: Will this in anyway hurt your expansion plans or your cash book balance?
A: Not at all. We have sufficient funds to purchase this. All we wanted from the government was that there should not be any lock-in period which has been agreed. Whenever we need this money, we can always sale these stakes and then we can raise the cash which we need for our purpose.
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