The government will this week sell up to 1.5% of its stake in the country’s top oil and gas producer ONGC to raise about Rs 3,000 crore. The Offer for Sale by the government was open on March 30 and 31, Oil and Natural Gas Corporation (ONGC) said in a stock exchange filing on 31st March.
“The promoter (the government) proposes to sell up to 94,352,094 equity shares of the company, (representing 0.75% of the total paid-up equity share capital of the company) on March 30, 2022 and on March 31, 2022 with an option to additionally sell 94,352,094 equity shares (in case of oversubscription),” it said.
The floor price for the OFS has been set at Rs 159 per share, which is at a 7% discount to the Rs 171.05 stock closing price of ONGC on the BSE Last month.
In the OFS, a minimum of 25% of the shares are reserved for mutual funds and insurance companies while 10% earmarked for retail investors. Retail investors are defined as an individual investor who bids for not more than 2 lakh shares.
ONGC employees can apply for equity shares worth up to Rs 5 lakh each, the filing said, adding that 0.075% of equity shares sold in the OFS would be offered to eligible employees at the cut-off price.
The government owns a 60.41% stake in ONGC which produces half of India’s oil and gas.
ONGC informed the BSE that the base offer size of the OFS will be 94.35 million shares with a face value of Rs 5 each constituting 0.75% of the equity of the company. The government will also exercise the option to additionally sell 94.35 million shares equivalent to a 0.75% stake in the company by retaining oversubscriptions.
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