PARTIAL SALE OF IOC AND GAIL

Vol 3, PW 1 (03 Feb 99) News in Brief
     

Moves have begun to sell off small chunks of government equity in Gas Authority of India (GAIL) and Indian Oil Corporation (IOC).

On 2 February lead managers in Mumbai closed the door on institutional offers for 10% of GAIL stock, bringing the governments equity stake down to 86.58%. Sentiment for GAIL stock is downbeat, following a government directive that it buy 2.5% of ONGC stock as part of an equity cross-holding scheme.

ONGC and IOC will each pick up 5% of GAIL, bringing the government stake down further to 76.58%. ONGC and IOC will also buy 10% of each others equity.

On 27 January a Task Force On Disinvestment approved the sale of 5% equity in IOC in March.

LNG Summit