The government is planning to auction 5% stake in state-run oil explorer ONGC, which would fetch Rs 12,000 crore for the exchequer. The EGoM, headed by Finance Minister Pranab Mukherjee, is expected to decide on the timeline and the base or reserve price for the auction of Government stake in ONGC.
Talking on the development, RS Sharma, ex-chairman, ONGC said that the prevailing price is depressed because of the uncertainty on subsidy sharing formulation. According to him, if the government could come up with a mechanism, the ONGC stock would have been trading at least 15-20% higher. Below is an unedited trasncript of his interview. Also watch the accompanying video. Q: Do you think it will be easily sold. There will be enough appetite for ONGC? A: Yes, one of the activities I am doing is talking to the large funds and institutional investors and I feel that the sentiment is quite good for ONGC despite the prevailing uncertainty about the subsidy sharing. Q: Investors have been saying they will buy ONGC but they are not insensitive to the price at which it is offered and they would like to see a reserve price of somewhere in the vicinity of Rs 270Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
