NEW DELHI: The government on Thursday cleared the proposal to sell 10% of its stake in flagship refiner-marketer IndianOil Corporation with the aim of mopping up Rs 3,750 crore at the current market price. 

The company's scrip closed at Rs 195.75, down 4.84% on the BSE on Thursday. At the current market price, the sale of 19.16 crore shares would fetch Rs 3,750 crore to the exchequer. 

The government holds 78.92% in the company. The disinvestment department has already selected five merchant bankers -- Citibank, HSBC, UBS Securities, SBI Capital and J M Financial -- to manage the stake sale of the oil major.

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