SP Tulsian`s view on ONGC

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SP Tulsian`s view on ONGC

SP Tulsian, sptulsian.com shares his view on ONGC.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about ONGC See messages about ONGC

SP Tulsian, sptulsian.com shares his view on ONGC .

Tulsian told CNBC-TV18, "ONGC, a lot of confusion in fact now the share is ruling at Rs 275 and you have the institutional placement programme (IPP) guidelines in front of you and now it is clear-cut indication that the government is more keen to go for the resource mobilisation because IPP guidelines is not being complied or followed for bringing down the stakes in the companies where the stake is more than 90% which is the case of ten companies where the valuations are all unrealistic, so one fails to understand that even if now at this stage when you have share price ruling at Rs 275 and it is quite obvious that there seems to be institutional appetite for the stock why government is not keen to expedite this process because these kind of postponement and deferment first you schedule that ONGC and BHEL are on scheduled on the agenda creates unnecessary volatility in the share price."

He further added, "In my view it is definitely likely to happen, I am not too sure about BHEL because I have been maintaining my reservation for BHEL and SAIL in fact in case of these two companies' valuations are so pathetically low that I don't see any meaning in government to initiate the divestment process at this stage. But in case of ONGC if they are able to succeed in getting 5% stake anywhere between 260- 280 I think that's a good price and government is likely to do that probably that will happen in next 15 days because government itself will be keen to complete this process by 31st March so as to garner 12,000-13,000 crore from this auction process of ONGC."