Tuesday, September 15, 2009

State-controlled Oil Refiners Acquiring 10% Stake at Oil India

A number of state-run oil refinery companies in India are going to buy a 10-percent stake of Oil India Ltd., an oil exploring company. It has been reported that the government-run refiners would have to pay $453 million to acquire the 10 percent stake. State-run refiners like Indian Oil, Bharat Petroleum Corp. and Hindustan Petroleum Corp. will buy a significant amount of shares of Oil India. Indian Oil accounts for about half of the total purchase by the refiners.

Bloomberg reported:

The government’s stake was sold when Oil India raised 27.8 billion rupees selling shares at 1,050 rupees apiece in an initial public offering that closed on Sept. 10. The explorer sold 10 percent of its equity to the public and 1 percent to employees.

No doubt, Oil India is trying to raise some fund by selling these shares. Indian government is trying to raise 250 billion rupees by selling assets to fuel up Indian economy.