IOC follow-on offer may be re-examined
New Delhi   09-Dec-2010

The volatility in global crude oil prices may compel the Government to re-examine IndianOil (IOC) follow-on public offer slated for this fiscal.

Along with the FPO through which the Government will divest 10 per cent of its stake, IOC will be selling an equal number of fresh shares.

The Petroleum Secretary, Mr S. Sundareshan, said: “The Government has not taken a final decision on the IOC FPO yet. IOC divestment proposal was mooted when crude oil prices were lower.”

“We will have to re-examine the IOC FPO in light of the current crude oil levels. We cannot go ahead with FPO now as crude oil is expected to further harden,” he said.

IOC FPO was expected in the fourth quarter of the current fiscal.