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IOC ropes in six banks to manage FPO
18 November 2010: IOC has appointed six banks, including Merrill Lynch, Citigroup and ICICI Securities, to handle its follow-on public offers (FPO) planned for early 2011.
The six book running lead managers were hired from a set of 18 banks which made presentations recently. Other banks hired were Morgan Stanley, SBI Capital and UBS.
The 18 banks called for persentations between November 14 to 16 included Credit Suisse Securities, Deutsche Bank AG, Edelweiss Capital, Enam Securities Ltd, Goldman Sachs, HSBC Securities and Capital Markets, IDBI Capital Market Services, IDFC Capital, JP Morgan, JM Financial, Kotak Mahindra Capital and RBS Equities.
The Union Government has approved fresh equity issue of 10 per cent of existing paid-up capital by IOC. Along with this, the government also intends to disinvest 10 per cent of the pre- issue equity capital through follow-on or FPO in the domestic market.
The government intends to raise about Rs 24,000 crore through 10 per cent stake sale in IOC and five per cent in ONGC.
Source: Times of India