IOC buy will leave us with only Rs 2500 cr cash: ONGC exec

Jan 20, 2014, 11.07 AM IST

Following a weak response to the proposed divestment in IOC, and also opposition from the oil ministry on selling stake at depressed valuations, the government has decided to ask state-owned companies ONGC and OIL India to pick up stake in IOC.

Tags Indian Oil Corporation, Oil and Natural Gas Corporation, Aloke Kumar Banerjee, divestment, fiscal deficit, Oil India

Like this story, share it with millions of investors on M3

Like this story, share it with millions of investors on M3

IOC buy will leave us with only Rs 2500 cr cash: ONGC exec

. Share . Email . Print . A+A-

The decision to buy stake in Indian Oil Corp will leave ONGC with only Rs 2500 crore in its cash reserve, ONGC 's Director, Finance Aloke Kumar Banerjee told CNBC-TV18 Monday. The company had a cash balance of over Rs 13,200 crore at the beginning of the year, he said. The company will most likely have to buy 5 percent stake in IOC , as per an informal intimation, he added.

Following a weak response to the proposed divestment in IOC, and also opposition from the OIL ministry on selling stake at depressed valuations, the government has decided to ask state-owned companies ONGC and OIL India to pick up stake in IOC. This is being done so as to enable the government to raise cash to bridge the fiscal deficit and meet the 4.8% target for the year.

The move has drawn criticism from the stock market, as it is seen hurting the capex plans of OIL and ONGC.

Stay tuned for more...

IOC stock price

On January 20, 2014, at 11:10 hrs Indian Oil Corporation was quoting at Rs 223.40, down Rs 1.1, or 0.49 percent. The 52-week high of the share was Rs 375.00 and the 52-week low was Rs 186.20.

The company's trailing 12-month (TTM) EPS was at Rs 67.69 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 3.3. The latest book value of the company is Rs 251.75 per share. At current value, the price-to-book value of the company is 0.89.

Olahraga Kecantikan