The government of India has sold 10% stake in OIL India Ltd (OIL) to a consortium of public sector refining companies for Rs 2,200 crore.

Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have picked up the stake in OIL, the country’s second-largest government-run oil explorer, according to reports.

OIL completed its book-building process on September 10 and the issue was subscribed nearly 31 times. The firm will list on September 30 and the government has fixed an issue price of Rs 1,050. The OIL stake has been allotted to public sector refiners at the IPO share price. While IOC has picked up a 5% stake for Rs 1,100 crore, both BPCL and HPCL have picked up a 2.5% stake each. OIL India has also raised Rs 2,780 crore through a fresh issue to the public, selling around 11% stake. Post IPO, the government’s stake in OIL will be a little over 78%.

The OIL India stake sale is the second divestment undertaken by the new government, after it assumed power. In August, public sector National Hydel Power Corporation was listed on the bourses where the government sold 5% stake.

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