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IOC open offer for IBP oversubscribed 150%

BS Corporate Bureau

Indian Oil Corporation's open offer of IBP has been oversubscribed by one-and-half times.

The corporation made the offer under the SEBI guidelines after it acquired 33.58 per cent government holding in IBP at a consideration of Rs 11.54 billion. The offer closed today.

The offer price of Rs 1,551.25 per share is the same at which it bought government's stake in IBP during the divestment process in February 2002. IOC will have to shell out Rs 6.88 billion for acquiring 20 per cent equity from the open offer.

The government now holds 26 per cent stake in IBP with the balance 41.42 per cent being distributed among institutions, public and private corporate bodies. The public holding in the company is about 14 per cent.

Just prior to the deregulation of the petroleum sector, IOC bagged the retail marketing oil company IBP by virtue of being the highest bidder at the government's divestment process. The government decontrolled the oil sector by dismantling administered pricing mechanism on April 1, 2002.

IBP has about 1,500 retail outlets most of them located in the eastern and northern regions of the country. It now lends further strength to the already strong marketing network of IOC. With the acquisition of IBP, Indian Oil's market share has shot up to 60 per cent from 54 per cent.

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