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ONGC withdraws FPO papers, to file again if asked

23 Nov 2011 Evaluate

State-owned Oil and Natural Gas Corp (ONGC)has withdrawn the papers it filed for a government share sale, but will filethe red herring prospectus (RHP) again if instructed. This (withdrawal of RHP)is technical. The document filed in September had a validity of 90 days and sowe have withdrawn it. It is no reflection if the follow-on offer (FPO) iscoming or not.

InSeptember, ONGC had filed the RHP for the FPO through which the governmentplans to sell a 5% stake, or 427.77 million shares, in the company. The FPO wasto open on September 20, but was put off days ahead of its opening due tomarket uncertainty. After the FPO, the government's stake in ONGC willcome down to 69.14% from the current 74.14%. The government plans toraise at least a fourth of its Rs 40,000 crore divestment target for thecurrent fiscal from the 5% stake sale in ONGC. The share sale has been deferredseveral times this year. It was supposed to happen in December, but this isunlikely because the company does not meet market regulator Sebi's listing normfor half of its board to be made up of independent directors. Three ofONGC's directors -- S Balachandran, SS Rajsekar and Santosh Nautiyal -- ceasedto be directors on the company's board on November 10 after expiry of theirthree-year term. Their replacements are yet to be named as the proposalis awaiting a nod from the Cabinet Committee on Appointments (ACC).

ONGC Share Price

279.25 -4.70 (-1.66%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
ONGC 279.25
Oil India 454.40
Jindal Drilling&Inds 535.85
Deep Industries 457.70
Asian Energy Service 297.85
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