IOC scrip surges 11% on FPO price announcement

IOC scrip surges 11% on FPO price announcement

Mumbai: Shares of Indian Oil Corp (IOC) surging nearly 11% at the BSE on Wednesday, after the company announced that its FPO will be priced at around Rs450 a share, well above the current market levels.

Reacting positively to the move, the scrip settled the day 10.96% higher at Rs384.10 on the Bombay Stock Exchange. During the day it had soared 14.32% to an intra-day high of Rs395.75.

IOC chairman B. M. Bansal today said the company was expecting to sell share at Rs450 a piece in the follow-on public offer (FPO), which is planned for late January next year.

The company scrip witnessed a similar uptrend at the National Stock Exchange where it closed at Rs385.25, up by 11.14% from the yesterday’s close.

IOC that has a market capitalisation of Rs93,257 crore, saw over 62 lakh of its shares getting traded on the two bourses.

Through the FPO the government will divest its 10% stake along with the company selling an equal number of fresh shares.

The FPO will raise about Rs20,000 crore- Rs10,000 crore each for the government and the company.

Besides, other major oil and gas counters too witnessed a smart trade, including ONGC which rose by 3.23%, BPCL 2.95%, HPCL 4.46%. Led by gains in these stocks, the BSE oil & gas index too went higher by 148.71 points to end at 10,210.79.

Meanwhile, the BSE Sensex recorded its third straight session gain, ending the day 328.75 points higher at 19,850.