New Delhi, Aug. 10: The government is planning to offer a 10 per cent stake in Oil India Ltd (OIL) to state refiners when the public sector undertaking launches an initial public offering in February. The issue will garner Rs 1,000 crore to Rs 1,500 crore.

“We have moved a note for the consideration of the cabinet to divest a 10 per cent stake of the government along with the company’s IPO,” a petroleum ministry official said.

OIL plans to offer a 10 per cent stake to the public in an IPO and another 1 per cent to its employees in February 2008.

The government also seeks to sell 5 per cent of its stake in OIL to the Indian Oil Corporation and 2.5 per cent each to Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The government now holds a 98 per cent stake in the company.