Aloke Kumar Banerjee is confident that ONGC's share price will get boosted once subsidy sharing formula is finalised. Government should not go for divestment until clear cut subsidy mechanism in place, he added.
Following a weak response to the proposed divestment in IOC, and also opposition from the oil ministry on selling stake at depressed valuations, the government has decided to ask state-owned companies ONGC and OIL India to pick up stake in IOC.
The sharp fall in the value of the rupee against the dollar and the recent strengthening global oil prices due to the Syrian and Egyptian crisis have shot up India's crude oil import bill.
There may be some upside to the company's margins with the gas price hike implementation, said Aloke Kumar Banerjee of ONGC. He added that the impact would also be felt on the overall investment scenario in the oil and gas sector.