New Delhi: The Indian Oil Corporation (IOC) on October 7 suggested a mega overseas public issue of two billion Dollars or acquisition of government stake in HPCL (Hindustan petroleum Corporation Limited) to avoid a split in its retail business as proposed by the Ministry of Disinvestment.

IOC Board of Directors told Petroleum Minister Ram Naik that the mega American Depository Receipts (ADRs) or American Depository Shares (ADS) of 20 per cent of IOC equity can be launched to garner Rs 9600 crore by the government, highly placed sources said.

Alternatively, IOC suggested taking over government's 34.01 per cent stake in HPCL to avoid sale of its retail arm to a third company.

Sources said the twin proposals were mooted to Naik when IOC Board met him to present a final dividend cheque.

PTI