The inter-ministerial group (IMG), headed by Disinvestment Secretary Ravi Mathur, would shortlist
five merchant bankers for managing the 10 per cent government stake sale in Indian Oil Corporation (IOC).
The five merchant bankers would be shortlisted from among 17 banks, who would make presentations to the IMG.
It is learnt that merchant bankers like Citibank, Goldman Sachs and ICICI Securities may make presentation before the group. Merrill Lynch, J P Morgan, Standard Chartered, HSBC, SBI Capital and Macquarie are also in the running for merchant bankers.
IOC has a market capitalisation of Rs 54,677 crore and recorded a net profit of Rs 5,005 crore in 2012-13, up from Rs 3,954 crore in the previous year. The government plans to raise Rs 40,000 crore through disinvestment in 2013-14.
The government intends to sell 10 per cent or 19.16 crore shares of IOC and hopes to mop up over Rs 4,300 crore at current rates.
In 2013-14, stake sale in Coal India (CIL) would be the largest disinvestment followed by IOC.
However, government faces opposition from trade unions who demand the discontinuation of stake sale in public sector oil companies to prevent privatisation of state-run firms.
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