Govt begins process to select m-banker for OIL divestment

The government has begun the process of selecting merchant banker for divestment in Oil India, say sources. The role of the merchant bankers would be to assist and advise the government on the modalities of the offer for sale and also conduct market surveys for pricing the offer

The Oil divestment will be through offer for sale route since the company is well-capitalised and hence no fresh equity issue is required.
The company has signed a few confidentiality pacts from mergers and acquisitions and is likely to announce a deal of less than USD 100 by Oct-Nov.
Meanwhile, on Friday, the government has approved the proposal to sell 10% stake in Oil India and 12.15% in NALCO. The cabinet also cleared the proposal of 9.33% stake sale in MMTC through the offer for sale (OFS) route and 9.59% in Hindustan Copper.
The government planned to raise Rs 15,000 crore through these issues.