IOC kicks off process of follow-on offer
New Delhi   02-Nov-2010

IndianOil on Monday formally kicked off the process of launching its follow-on public offer and invited bids from merchant bankers to manage its share sale programme, estimated to raise Rs 19,000 crore.

The company will appoint up to six merchant banks to form a consortium of book running lead managers for the FPO which would comprise disinvestment of 10 per cent government equity and 10 per cent issuance of fresh capital by the company. A part of the public offering will be reserved for the employees of the company. The twin divestment and stake sale would reduce the government holding from 78.92 per cent to 64.57 per cent.

In a significant move, the company has also sought details of previous issues comprising of ADRs and GDRs that the banks have managed in international and domestic markets.