New Delhi, Nov 30: Oil marketing firm Indian Oil Corporation Ltd (IOC) today said it will buy 1,07,00,220 equity shares of Oil India Ltd (OIL), constituting five per cent of OIL's pre-issued paid-up capital from the government.
The company's board during its meet on Wednesday accorded approval for executing the share purchase agreement with the government.
The IOC will purchase the shares at a price equivalent to the issue price of the equity shares proposed to be offered by OIL to the public through an initial public offering in accordance with the book-building method, a statement said.
The sale and purchase will be completed prior to the allotment of equity shares to the public and within 48 hours after the issue price is determined through the book-building method after obtaining the approval of the OIL's board of directors.
This above is in accordance with the approval accorded by the government.