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India's biggest public issue opens on impressive note
Friday, 05 March 2004, 20:30 IST
NEW DELHI: The Indian government's offer to sell 10 percent of its equity in energy giant Oil and Natural Gas Corporation (ONGC) won an impressive response on the first day of the public issue launch Friday.
The public issue of ONGC, the largest ever initial public offering (IPO) launched by any company in the Indian capital market, was fully subscribed in just half an hour of its opening at 10 a.m. Friday.
ONGC, which plans to raise a whopping 
100 billion ($2.4 billion) through the equity sale, received bids for 153 million shares against 142 million shares on offer, according to data posted on the Bombay Stock Exchange (BSE) website.
The Indian government has fixed the share price of ONGC public issue between a band of 680 and 750. Most bids were received at the lower end of the price band, said the BSE. The bid offer closes on March 13.
Analysts say there was a strong demand among institutional investors for new shares of ONGC, India's most valuable company by market capitalisation.
The government is closely tracking the investor response to the ONGC issue as its plans to meet the privatisation target for the current fiscal year hinges to a great extent on the success of the energy giant's public offering.
The government has floated public issues of half a dozen public sector companies before the end of the current fiscal March 31 to meet its budgetary target of privatisation proceeds.
New Delhi has set a target of raising 132 billion ($2.91 billion) in 2003-04 by selling its shares in blue-chip public sector units but has so far managed to generate just 13.35 billion ($295 million).
Disinvestment Minister Arun Shourie had earlier said overseas investors had shown strong interest in the partial divestment of government stake in ONGC.
The government's stake sale drive in other public sector firms, including IBP and GAIL Ltd., has received impressive investor response after starting on a sluggish note.
At noon, the Indian stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex was quoting at 5,846.56, representing a gain of 30.69 points or 0.53 percent over its close Thursday.
The market closed moderately lower Thursday as institutional investors adopted a cautious approach on the eve of the launch of the big-ticket ONGC public issue.
Source: IANS
100 billion ($2.4 billion) through the equity sale, received bids for 153 million shares against 142 million shares on offer, according to data posted on the Bombay Stock Exchange (BSE) website.
The Indian government has fixed the share price of ONGC public issue between a band of 680 and 750. Most bids were received at the lower end of the price band, said the BSE. The bid offer closes on March 13.
Analysts say there was a strong demand among institutional investors for new shares of ONGC, India's most valuable company by market capitalisation.
The government is closely tracking the investor response to the ONGC issue as its plans to meet the privatisation target for the current fiscal year hinges to a great extent on the success of the energy giant's public offering.
The government has floated public issues of half a dozen public sector companies before the end of the current fiscal March 31 to meet its budgetary target of privatisation proceeds.
New Delhi has set a target of raising 132 billion ($2.91 billion) in 2003-04 by selling its shares in blue-chip public sector units but has so far managed to generate just 13.35 billion ($295 million).
Disinvestment Minister Arun Shourie had earlier said overseas investors had shown strong interest in the partial divestment of government stake in ONGC.
The government's stake sale drive in other public sector firms, including IBP and GAIL Ltd., has received impressive investor response after starting on a sluggish note.
At noon, the Indian stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex was quoting at 5,846.56, representing a gain of 30.69 points or 0.53 percent over its close Thursday.
The market closed moderately lower Thursday as institutional investors adopted a cautious approach on the eve of the launch of the big-ticket ONGC public issue.
Source: IANS