The government is likely to sell 20 per cent of its equity in Bharat Petroleum Corporation Ltd in the overseas market while another 15 per cent stake would be offloaded in the domestic markets.

The Inter-Ministerial Group on BPCL divestment favoured last week offering 60 million shares, representing 20 per cent equity base of BPCL, in the overseas market, possibly the American market, through American Depository Receipts, highly placed sources said.

Another 45 million shares would be sold to the public in domestic capital markets, they said, adding book building route would be followed in both the offers to arrive at the issue price.

The government is bringing down its shareholding in BPCL from 66.2 per cent to 26 per cent by selling 35.2 per cent stake to the public (both domestic and overseas) and another five per cent to the company employees.

Global advisor for BPCL stake sale, likely to be appointed by next month end, would work on the modalities of the simultaneous offering of government stake in overseas and domestic market, sources said.

At the current market price of Rs 210 a share, the sale would rake in Rs 2200 crore (Rs 22 billion) for the government.

Sources said a flexible approach would be adopted to determine the timing and exact quantum of equity offload in the domestic and overseas market.

Sources said though BPCL would cease to be classified as public sector undertaking after government divests its stake, its account would have to be certified by the Comptroller and Auditor General.

BPCL employees would be given the government's five per cent equity shares on VSNL pattern - i.e. sale of shares to employees at one third of the sale price or one third of the past one month average market price, whichever is lower, subject to the floor price of Rs 10 per share, sources said.