New Delhi: The government is set to raise at least Rs 12,500 crore by selling a 5 per cent stake in Oil & Natural Gas Corp (ONGC) on Thursday, aiming to patch up its widening fiscal deficit and revive its stalled privatisation agenda.
The government on Tuesday decided to fix a floor price for ONGC stake sale at Rs 290 per share of face value of Rs 5 that could fetch the exchequer about Rs 12,500 crore. The day-long auction, will take place on Thursday between 9:15 am and 3:30 pm.
The government owns 74.14 per cent stake in ONGC and proposes to offload 427.77 million shares or 5 per cent equity. The shares would be sold to institutional as well as retail investors on the 'price priority' basis.
The ONGC share, closed over 9 per cent, at Rs 293 on Bombay Stock Exchange on Wednesday.
Six brokers including Citigroup Global Markets India, Morgan Stanley India Company and DSP Merrill Lynch will manage the share sale. The auction route or 'offer for sale of shares by promoters' involves very little paperwork and the whole process can be done within one trading day.
Capital market Regulator Securities and Exchange Board of India (Sebi) had issued norms allowing promoters to sell stake by way of auction, through a separate window on BSE and the NSE, which has to be completed within a day.
With Additional Inputs From PTI