The Empowered Group of Ministers (EGoM) have okayed stake sale in ONGC (Oil and Natural Gas Corp) in this fiscal. However, divestment in BHEL (Bharat Heavy Electricals) is expected anytime in FY13.
The EGoM, will meet soon to decide on the date and the price at which divestment in ONGC will take place. At the current market price of Rs. 280 a piece, the stake sale would fetch the government over Rs. 10,000 crore.
It may be recalled that the government had in November last year put on hold a proposal to sell 5% of its stake in ONGC through a public offering due to weak market conditions.
The government that time had plans to raise Rs. 45,000 crore through public sector undertaking (PSU) disinvestment in the current fiscal. The government has so far been able to raise only Rs 1,145 crore.
But, now that the capital markets regulator Securities and Exchange Board of India (SEBI) has announced rules for the sale of shares through auctions to institutional investors, EGoM has finalised on this route to raise funds as it involves very little paperwork and the whole process can be done very quickly.
The government owns 74.14% stake in ONGC and plans to sell 427.77 million shares, which will trim its holding to 69.14%.
