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ONGC may file for follow-on offer on March 1

Our Bureau Mumbai | Updated on February 26, 2011

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State-run ONGC is likely to file its Draft Red Herring Prospectus (DRHP) for its follow-on offer next week, said sources in the finance ministry. Though it was earlier reported that the company would file its DRHP in the week ending February 26, officials in the ministry said that it is not happening this week.

A Reuters report on Friday quoting the Chairman of ONGC, Mr A.K. Hazarika, said that the DRHP would be filed on March 1. ONGC had its Board meeting on Friday.

As on December 31, 2010, the Government held a 74.14 per cent stake in ONGC and public 25.86 per cent. The institutions that hold stakes in the company include LIC (3.06 per cent), Gail India (2.4 per cent) and IOC (7.69 per cent).

The Government plans to sell five per cent of its stake in ONGC through the issue. ONGC plans on raising more than Rs 10,000 crore through the FPO.

The ONGC FPO will help the Government meet its divestment target of Rs 40,000 crore set for the current fiscal.

According to data on the BSE, the Government has mopped up a total of Rs 22,763 crore through divestments this year. This includes the bumper Coal India initial public offering of Rs 15,000 crore. Last year the Government raised a little over Rs 20,000 crore through various divestments including that of NHPC, United Bank of India, the REC and NTPC follow on offerings.

Shares of ONGC closed down 0.7 per cent at Rs 262.9 on BSE on Friday.

Published on February 25, 2011

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