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ONGC equity sale rakes in 
105 bn
Tuesday, 16 March 2004, 20:30 IST
NEW DELHI: The Indian government Monday said it was set to mop up a whopping 
105 billion by selling part of its equity in energy giant Oil and Natural Gas Corporation (ONGC) as part of its privatisation drive.
The government is selling 10 percent of its equity in profit-making ONGC, India's largest company by market capitalisation, through the public offering route.
The bid offer for ONGC, which closed last Saturday, was oversubscribed by nearly six times, Disinvestment Minister Arun Shourie told a news conference here, adding the sale will generate 105.34 billion.
He said bidders would be offered a share of ONGC at 750. The government had earlier announced the bid price range for the issue, the country's biggest-ever public offering, between 680 and 750.
Retail investors will, however, get a discount of five percent and they would have to pay 712.50 for a share.
Shourie said institutional investors would get 46 percent of 142.6 million shares of ONGC on offer while high net worth individuals and retail investors would be allocated 24 percent and 18 percent respectively.
The minister said with the massive investor response to the ONGC issue the government would generate 154 billion by selling its shares in state-run companies in the year ending March 31, exceeding its target of 145 billion.
In the last three weeks, the government offered most of its shares in four state-owned companies -- Indian Petrochemical Corp Ltd. (IPCL), Dredging Corp, Computer Maintenance Corp (CMC) and oil retailer IBP.
In addition, it also put on the block 10 percent of its equity in profit-making energy giants ONGC and Gas Authority of India Ltd (GAIL).
The bidding process for all offerings closed after they were oversubscribed.
Investors bid for 11 times the number of shares on offer for CMC, Dredging Corp was oversubscribed 6.5 times, Indian Petrochemicals nearly five times, IBP more than twice, and blue-chip GAIL eight times.
Source: IANS
105 billion by selling part of its equity in energy giant Oil and Natural Gas Corporation (ONGC) as part of its privatisation drive.
The government is selling 10 percent of its equity in profit-making ONGC, India's largest company by market capitalisation, through the public offering route.
The bid offer for ONGC, which closed last Saturday, was oversubscribed by nearly six times, Disinvestment Minister Arun Shourie told a news conference here, adding the sale will generate 105.34 billion.
He said bidders would be offered a share of ONGC at 750. The government had earlier announced the bid price range for the issue, the country's biggest-ever public offering, between 680 and 750.
Retail investors will, however, get a discount of five percent and they would have to pay 712.50 for a share.
Shourie said institutional investors would get 46 percent of 142.6 million shares of ONGC on offer while high net worth individuals and retail investors would be allocated 24 percent and 18 percent respectively.
The minister said with the massive investor response to the ONGC issue the government would generate 154 billion by selling its shares in state-run companies in the year ending March 31, exceeding its target of 145 billion.
In the last three weeks, the government offered most of its shares in four state-owned companies -- Indian Petrochemical Corp Ltd. (IPCL), Dredging Corp, Computer Maintenance Corp (CMC) and oil retailer IBP.
In addition, it also put on the block 10 percent of its equity in profit-making energy giants ONGC and Gas Authority of India Ltd (GAIL).
The bidding process for all offerings closed after they were oversubscribed.
Investors bid for 11 times the number of shares on offer for CMC, Dredging Corp was oversubscribed 6.5 times, Indian Petrochemicals nearly five times, IBP more than twice, and blue-chip GAIL eight times.
Source: IANS