NEW DELHI, March 3 (UPI) -- India's state-run Indian Oil Corp. has sold 50 percent of its cross-holdings in the Gas Authority of India Ltd.
The Indian Express newspaper said Friday the company will also offload its equity holdings in the Oil and Natural Gas Commission.
The recommendation to sell the stakes in the two companies came from JP Morgan and Citi Financials, news reports said.
The report, quoting an unidentified IOC official, said IOC sold 20.42 million shares in GAIL to institutional investors at $6 each. IOC bought the shares in 1999 at $1.35 each.
The official said GAIL's shares were purchased by local and overseas funds, including India's Life Insurance Corp. and ICICI Prudential, explaining the share sales are part of a strategy to retire its $4.3 billion in market borrowings while also raising funds for expansion.
IOC owned 9.61 percent or 1,3700000 equity shares in ONGC and 4.83 percent or 4,0800000 shares in GAIL, which are currently valued at more than $383 million.
The IOC board on Dec. 28 approved the sale of 20 percent of its stake in ONGC and half its share of GAIL, energy-starved India's biggest gas companies.
