ONGC FPO likely to hit market on Sept 20: Sources

The wait has been rather long but may see light of the day soon . Finally follow-on-offer (FPO) of state-run ONGC is likely to hit the market on September 20, reports CNBC-TV18 quoting sources.

The FPO has been jammed in a roadblock due to government's ad-hoc subsidy sharing mechanism. However, subsidy sharing mechanism is likely to be put in place before the FPO, sources add.

Earlier, there were media reports that ONGC is considering to may file papers for a Rs 12,000 crore share sale by early next month. 

The government plans to sell 5% of 427.77 million shares through the FPO. The FPO was originally planned for 2010-11 fiscal but was deferred to April 5 as the company did not have adequate number of independent directors on its board to meet the SEBI's listing norm.

It was then scheduled for July 5 but was again deferred because of market conditions. In January, the government had appointed Citigroup, Nomura Holdings, Bank of America Corp, HSBC Holdings, JM Financial Services and Morgan Stanley to manage ONGC share sale.

Post-FPO, the government's stake in ONGC would come down to 69.14% from the current 74.14%.