Monday, April 18, 2011

ONGC FPO Date Delayed; Likely To Hit Market in June


The Rs 12,000 crore follow-on public offer (FPO) by Oil and Natural Gas Corporation (ONGC) is likely to hit the market in June this year. The FPO is expected to fetch the government almost a third of its Rs 40,000-crore disinvestment target.

Originally scheduled to take place in March, the FPO was delayed because of inability of ONGC to meet SEBI’s listing norm of having an equal number of functional and independent directors on its board.

"The oil ministry has indicated that the issue (of independent directors) will be resolved soon," a finance ministry official said. "We are hopeful of bringing out ONGC issue around last week of June."

"We will have (the share sale of) Power Finance first, followed by Sail or ONGC," Disinvestment secretary Sumit Bose said. The government, which presently owns 74.14% of ONGC, aims to sell 5% of its stake in the company.

Source: Religare Technova

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