Trending Large Cap Stock: IOC eyes government’s stake in Oil India
DSIJ Intelligence / 18 Jul 2017
Oil India (OIL) is a 'Navratna' stateowned company, engaged in exploration, development and production of crude oil and natural gas in India.
In line with Modi Government’s quest to create integrated public sector oil majors, Indian Oil Corporation (IOC) is in talks to buy out the government's 66% stake in upstream major Oil India Limited (OIL). This is second such deal to take place in the current fiscal post the forthcoming ONGC-HPCL deal.
Oil India (OIL) is a 'Navratna' stateowned company, engaged in exploration, development and production of crude oil and natural gas in India. Its major oil and gas production is from its operational areas of Upper Assam and Arunachal Pradesh.
This coalition exercise could build synergies, reduce inefficiencies in the sector and make these integrated companies better placed amongst global oil majors like Petrobras, BP, Chevron as well as private sector players in domestic market.
Besides creating a favorable mix with vertically integrated functions & operations, the consolidation of IOC-OIL is likely to generate substantial disinvestment revenue for the Centre.
This merger will prove beneficial to OIL in terms of better capacity to withstand fluctuations in oil prices and provide financial muscle to expand its operational base and compete for resources globally.
The proposal is in early stages with no decision yet on whether the merger would be all cash, or all stock, or a mix of both.
Post the report, Oil India’s stock closed 0.94% up at 274.5 on BSE.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.