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Govt may revive ONGC share sale via auction: Sources
India will consider selling shares in state-run Oil and Natural Gas Corp to investors through an auction, an oil ministry source said, as the government struggles to revive its divestment programme to plug the widening fiscal gap.
India will consider selling shares in state-run Oil and Natural Gas Corpto investors through an auction, an oil ministry source said, as the government struggles to revive its divestment programme to plug the widening fiscal gap.
A panel of federal ministers will meet this month to decide on the share sale and could consider the share auction route, the source said.
"The auction window has been opened recently. We can do it quickly. There is less paperwork," the source, who did not wish to be identified, told reporters.
The government had deferred ONGC's public offer to raise up to USD 2.5 billion in October, after tepid response from investors during roadshows amid weak equity markets and concerns over the company's rising share of fuel subsidies.
India originally planned to raise about USD 9 billion from share sales this fiscal year that ends in March, but has so far only raised about USD 250 million.
Last month, India's market regulator allowed owners of the country's top 100 companies by market value to raise funds by auctioning their stakes through stock exchanges.
It set a minimum offer size at 1% of the company's paid-up capital, worth at least Rs 25 crore.
The BSE Sensex posted its first annual fall in three years in 2011, declining nearly 25%. Shares in ONGC, the second-largest listed firm in India by market value, fell 20% in the same period.
Shares in ONGC closed 0.6% higher at Rs 283.30 in a firm Mumbai market.
