"We decided to follow the Nalco model, where we are offering 20 per cent equity in international markets and 10 per cent to domestic investors. Given the limited capacity of the domestic market to absorb large doses of equity, we decided to restrict the size of the BPCL domestic issue to 10-12 per cent," a senior divestment ministry official said.
Two large public issues, Maruti Udyog and Nalco, are already lined up for 2003. The Cabinet Committee on Divestment on Sunday decided the government would offload 35.2 per cent of its equity in BPCL in the domestic and international markets.
The government will invite fresh bids from merchant bankers for appointment as consultants for the public issue and ADR/GDR in the next couple of days.
The ministry had earlier invited bids from merchant bankers for the strategic sale of BPCL, but with the scope of work having changed, the process would begin afresh, the official said.
The adviser would prepare the prospectus for the company and the issues were expected to be completed in eight months, he said.
In the case of Hindustan Petroleum Corporation Ltd, where the CCD has mandated the government to offer 34 per cent equity to a strategic partner along with management control, the divestment ministry would invite expressions of interest from prospective bidders within the current month, the official said.
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