state-run India’s Maharatna company Oil and Natural Gas Corporation (ONGC) is entering into primary market with a Follow-on Public Offer (FPO) of 427,770,000 Equity Shares of Rs 5 each. The FPO is opening on 5th Jul 2011 and the shares will be available for subscription up to 8th Jul 2011. The premium of the issue will be decided through a 100% Book Building Process. The price band for the issue has been fixed at Rs. — – Rs. — Per Equity Share. The government is likely to raise around Rs 11,500 crore. The Indian government, which owns 74.14% of ONGC, plans to sell 5% in the offer. In this FPO retail investors are likely to get a discount of 5%.
ONGC issue proceeds will be a part of the divestment target of Rs 40,000 crore for financial year 2012. This is part of a wider plan by the Indian government to sell stakes in about 60 state-run firms over the next few years to cut its fiscal deficit and garner funds for social welfare programmes.
The equity shares offered through the FPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
FPO Open : 5th Jul 2011 – 8th Jul 2011
FPO Type : 100% Book Built Issue IPO
FPO Size : 427,770,000 Equity Shares of Rs 5 each
FPO Size : Rs 11,500 Crore
Face Value : Rs 5 Per Equity Share
FPO Price : Rs — – Rs. — Per Equity Share
Minimum Bid Quantity : — Shares (Rs. —- with 1 Lot) @ upper level of price band
Maximum Bid Quantity : — Shares (Rs. —– with — Lots ) @ upper level of price band
Listing At : BSE, NSE
The Book Running Lead Managers (BRLM) to the offer are Bank of America Merrill Lynch, Citi, HSBC, JM Financial, Morgan Stanley and Nomura.
Registrar of the Issue : Link Intime India Pvt Ltd.
Stay tuned to BelltheBull Blog for more on Oil and Natural Gas Corporation (ONGC) FPO !
Note :-ONGC FPO was scheduled to come in market on 5th April but due to shortage of independent directors, without the compliance of the clause 49 of Sebi, it was not possible, now this has been done and that is why the new date has been fixed for the FPO as 5th Jul 2011.Google+