On offer was 10 per cent paid-up capital of the company comprising 24,27,95,248 shares, of face value Rs10 each. Interestingly, the IOC share jumped 4.36% in volatile trade on Tuesday, reflecting a mark-to-market gain of Rs 161.75 crore on LIC’ investment. Back of the envelope calculations reveal that at the floor price of Rs 387 per share, LIC purchased shares worth over Rs 8,000 crore to help the IOC disinvestment sail through, a practice that has been followed even before by the government to ensure PSU stake sales have sufficient response. LIC’s stake in IOC will now rise to 11.11% from 2.52% earlier. The estimated cost of this project is Rs 275 crore and the completion period is 30 months after receipt of statutory clearances. The 41-km pipeline will primarily run through Nepal and initially supply petrol, diesel and kerosene. The institutional investors’ portion was subscribed 143% and the retail investors’ portion was subscribed 18%. After the stake sale, the government’s stake sale drops to 58.57%. At the end of the day with total subscription (including institutional and retail) of approximately Rs11,107 crore, the issue stood oversubscribed by 18 per cent. IOCL is India’s flagship national oil company, with business interests that straddle the entire hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas as well as marketing of natural gas and petrochemicals.

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