ONGC may file FPO draft prospectus this week

State-run Oil & Natural Gas Corporation (ONGC) may file draft red herring prospectus for its follow-on public offer (FPO) with the SEBI this week, its chairman AK Hazarika said on Wednesday.

He also told reporters the company is looking for foreign partners to bid in India's latest exploration licensing round.

ONGC's finance chief DK Sarraf told Reuters earlier this month the company would file for its planned share sale by the end of February.

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, expected to hit the market in March.

At 12:33 hours, the share was trading at Rs 270.95, down Rs 1.50, or 0.55%.

(With input from Reuters)