ONGC FPO to open on April 5

The government has postponed the follow-on public offer of state-run Oil & Natural Gas Corporation (ONGC) to next fiscal, reports CNBC-TV18 quoting PTI.

The issue will open for subscription on April 5.

The Indian government, which owns 74.14% of ONGC, plans to sell 5% in the offer as part of wider plan to sell stakes in about 60 state-run firms over the next few years to cut its fiscal deficit and garner funds for the poor.

As reported earlier, retail investors are likely to get a discount of 5%. The government proposed to divest 5% of its stake in ONGC which would bring down its stake in the company to 69.14%. The government is expecting to mop up Rs 10,800 crore through the FPO.

ONGC issue proceeds will be a part of the divestment target of Rs 40,000 crore for financial year 2012. "The proceeds of two of the largest follow-on public offer