ONGC share sale fully subscribed, Centre to get Rs 3,000 crore next fiscal

ONGC's Offer-For-Sale (OFS), which opened for retail investors on Thursday, received bids for over 1.33 crore shares.

New Delhi: The government's 1.5 per cent stake sale in ONGC got fully subscribed, ensuring Rs 3,000 crore to the exchequer that is to be accounted for in the next fiscal. The government is selling up to 1.5 per cent of its stake in the country's top oil and gas producer ONGC at a floor price of Rs 159 per share.

The Offer-For-Sale (OFS), which opened for retail investors on Thursday, received bids for over 1.33 crore shares. This represents 71 per cent of the total issue size of over 1.88 crore shares.

The unsubscribed portion of retail investors will be allotted to institutional buyers, who on Wednesday put in bids worth Rs 4,854 crore, which is three-and-half times their quota.

Institutional investors had put in bids for over 30.35 crore shares at an indicative price of Rs 159.91 per share, as against over 8.49 crore shares reserved for them. The bids made by institutional investors are worth Rs 4,854 crore based on the indicative price.

After seeing the demand from institutional investors, the government on Wednesday decided to exercise the green-shoe option, taking the total issue size to over 18.86 crore shares or 1.5 per cent stake in ONGC.

On BSE, shares of ONGC closed at Rs 163.90 apiece, up 1.02 per cent over its previous close.

The government is selling over 9.43 crore shares in ONGC with a green-shoe option of selling an equal number of shares. The total stake on the offer is up to 1.5 per cent.
Proceeds generated from the ONGC stake sale would be accounted for in the next fiscal, beginning April 1, after shares are allotted to investors.

In the current fiscal so far, the government has mopped up Rs 12,423.67 crore through OFS, employee OFS, strategic disinvestment and buyback. The disinvestment target for the fiscal is Rs 78,000 crore. Also Read: Lux Soap, Surf Excel, Rin will cost you more; here’s why HUL is increasing prices

The disinvestment target for next fiscal is Rs 65,000 crore. Also Read: Realme C31 with 5000 mAh battery launched in India: Price, specs, features