NEW DELHI (Commodity Online): The state-run Oil and Natural Gas Corp (BSE: ONGC: 500312, NSE: ONGC) is about to sell 5% or up to 426.77 million of its shares through FPO (Follow-on Public Offer) with the transaction expected to be priced on Sept. 27.
The proceeds may come around 110 billion rupees, Reuters cited a certain source as saying.
Originally the FPO was planned in the fiscal 2010-11 but got delayed and got deferred to April 5, 2011 as the company did not have enough number of independent directors as per SEBI’s listing norms. The FPO was then rescheduled for July 5, but was deferred yet again; thanks to unfavorable market conditions, according to The Business Standard.
In January 2011, Government had appointed Citigroup, Nomura Holdings, Bank of America Corp, HSBC Holdings, JM Financial Services and Morgan Stanley to manage ONGC's share sale.
Subsequent to the FPO, the government's stake in ONGC will diminish to 69.14% from the present 74.14%.
In BSE,ONGC is trading at Rs 259.35 at 12:00 pm on September 6, 2011
