Indian Oil to raise Rs20,000 crore in country's biggest stock sale

Indian Oil Corporation (IOC), the country's top oil marketing company, expects to raise around Rs20,000 crore ($4.4 billion) through a follow-on share sale, making it the biggest-ever share offer in the country.

The state-run oil marketing firm will issue 10-per cent fresh stock while the government will offer another 10 per cent through dilution of its holding.

IOC has tentatively fixed the issue price at around Rs450 a share, a 30 per cent premium to the stock's closing price on Tuesday.

"Our expectations are that it should be around Rs450," chairman BM Bansal said.

While the government is debating the issue of dual pricing of diesel, Bansal, however, ruled out the possibility of diesel price regulation in the near future.

"Unless crude oil prices decline to around $70-$75 a barrel, diesel deregulation is unlikely.