The Hindu Business Line : Rs 680-750 band for ONGC; 5% discount for retail investors

THE Government on Wednesday announced a price band of Rs 680-750 per share for sale of a 10 per cent equity constituting 14.26 crore shares in ONGC through a book-built public offer.

The retail investors would get a five per cent discount on the final cut-off price while 10 per cent of the public offer has been reserved each for employees/whole-time directors and shareholders of ONGC and its subsidiary MRPL.

``Further, the Government has decided that individual applicants in reserved category of employees and shareholders applying for up to a value of Rs 50,000 will also be given a lower price similar to that for retail individual bidders of five per cent less than the discovered price'', an official statement said here.

The proposed public offer for sale of shares in ONGC is the largest ever public offer in India's corporate history with the Government targeting a figure of over Rs 10,000 crore from the issue. The public offer will open on March 5 and close on March 13.

DSP Merrill Lynch, Kotak Mahindra Capital Company and JM Morgan Stanley are appointed as book-running lead managers to the issue.

Meanwhile, the Government said that the on-going public offer for sale of its 10 per cent equity in GAIL had evinced strong response from foreign investors with the offer getting over-subscribed by 2.5 times so far. The public issue will close on March 5.

``As much as 70 per cent of the subscription has come from foreign institutional investors,'' the Disinvestment Minister, Mr Arun Shourie, said. ``This is a strong sign of endorsement and confidence of investors,'' he added.

More Stories on : Disinvestment | Public Offer | Petroleum

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