Indian Oil Corporation, India's largest refiner, on Thursday sold half its stake in gas firm GAIL (India) Ltd for Rs 561.54 crore (Rs 5.61 billion) to repay debts and raise money for expansion plans.
IOC sold 20.42 million shares, or 2.41 per cent of GAIL, to institutional investors at Rs 275 per share, a top company official said.
The sale has been done as part of a strategy to retire its Rs 18,960 crore (Rs 189.60 billion) market borrowings and raise money for expansion plans.
IOC also plans to sell one-fifth of its stock holdings in Oil and Natural Gas Corporation, India's highest oil producer, before March 31 as part of this strategy, he said.
Prior to the sale of the GAIL stock, IOC owned 9.61 per cent or 13.7 crore (137 million) equity shares in ONGC and 4.83 per cent or 4.08 crore (40.8 million) shares in GAIL, which are currently valued at over Rs 1,700 crore (Rs 17 billion).
The company's Board had on December 28 approved the sale of 20 per cent of its holding in ONGC and 50 per cent of its holding in GAIL.
The official said the company needs about Rs 5,000 crore (Rs 50 billion) by March as working capital for running the expanded Panipat refinery and its paraxylene and PTA facilities.
JM Morgan Stanley and Citi Financials advised IOC on the sale. IOC had bought GAIL shares in 1999 at Rs 60 a piece.
GAIL's shares were purchased by local and overseas funds, including Life Insurance Corp and ICICI Prudential.
Do you want to discuss stock tips? Do you know a hot one? Join the Stockmarket Discussion Group.
© 2026