“After this disinvestment the government of India share-holding in the company would come down to 68.92 percent,” the finance ministry said in a statement Friday.
The decision was taken by the Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh Thursday evening.
“The disinvestment will be through Offer for Sale (OFS) method in the domestic market according to the SEBI rules and regulations,” it said.
The proposed divestment is likely to fetch around Rs.3,700 crore at the current market price.
The government hopes to raise Rs.40,000 crore through stake sales in the current financial year that began April 1.
The share price of Indian Oil Corporation slumped 2.48 percent to Rs.190.90 at the Bombay Stock Exchange.