Oil and Natural Gas Corporation (ONGC) wants its interest to be clubbed with the 51 percent government stake that is already on offer for sale.
ONGC share price rallied 5.5 percent intraday on Wednesday after a media report indicated that the board has approved exiting helicopter service provider Pawan Hans.
The board of directors of the state-run oil exploration company has approved exiting helicopter service provider Pawan Hans by selling its entire 49 percent stake as it looks to cut debt and consolidate resources in core oil and gas business, the PTI said quoting officials with direct knowledge of the development.
Oil and Natural Gas Corporation (ONGC) wants its interest to be clubbed with the 51 percent government stake that is already on offer for sale, the report said.
The Department of Disinvestment and Public Asset Management (DIPAM), which floated the offer for sale for government's 51 percent stake in Pawan Hans twice in the last 10 months, is likely to issue an amended expression of interest (EoI) shortly.
Officials told PTI that ONGC of the view that its investment in Pawan Hans is no longer strategic as it hires helicopters to ferry staff to its oil and gas locations, mostly in offshore, through competitive bidding.
Of the 22 helicopters it currently has on hire, just seven or less than a third are from Pawan Hans.
Pawan Hans owns a fleet of 46 helicopters.
"The board of directors of ONGC, at the 308th meeting held on June 29, accorded its in-principle approval for exploring options for the restructuring of ONGC group companies including exiting some with a view to consolidating business," an official said.
"The idea being to focus resources on core oil and gas exploration and production business and not scatter bandwidth of management in unrelated businesses," the official added.At 14:56 hours IST, the stock price was quoting at Rs 161.95, up Rs 5.85, or 3.75 percent on the BSE.