Deals

India Mulls Cutting Stake in Indian Oil to Below 51%

  • State-run companies, government to remain biggest shareholders
  • India plans to use exchange-traded fund for cut IOC stake

Indian Oil operations in Navi Mumbai, India.

Photographer: Dhiraj Singh/Bloomberg
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India plans to reduce its stake in Indian Oil Corp. to below 51% while ensuring the government and state-run companies retain control of the nation’s largest oil refiner, people with knowledge of the matter said.

Prime Minister Narendra Modi’s cabinet will consider, as early as next week, a proposal to sell shares in some companies, including Indian Oil, to below 51%, the people said, asking not to be identified as the plan is not public. India directly holds 51.5% in Indian Oil, and another 25.9% through state-run Life Insurance Corp. of India, and explorers Oil & Natural Gas Corp. and Oil India Ltd.