Be more patient, ONGC FPO likely to be deferred till Sep

This is one follow-on-offer (FPO) which has been in the logjam for long and is still unsure to see light of the day soon. The much-awaited ONGC FPO is likely to be differed till September, reports CNBC-TV18's Aakansha Sethi quoting sources.

The oil marketing company (OMC) was expected to file red herring prospectus (RHP) today.  However, sources say that the FPO has been deferred as the government is yet to form any resolution on subsidy sharing. Read ONGC Chairman SK Hazarika's exclusive interview. Officials from both the Petroleum and Finance Ministry have been working extensively on the oil subsidy, which is likely to be a function of crude price. Due to lack of resolution on oil subsidy sharing, ONGC has not received any instructions from divestment department regarding the RHP. Last month, ONGC board approved its RHP for its Rs 11,500 crore FPO. The share sale was originally planned for 2010-11, but was deferred to April 5 as the company did not have adequate number of independent directors on its board. The FPO was then planned for July 5 this year but was again deferred. The government has also appointed three independent directors, including former RBI Deputy Governor Usha Thorat, on the board of ONGC. Also watch the accompanying video.