Oil and Natural Gas Corporation (ONGC) FPO : Opening on 5th Apr 2011

by khalid on 03/03/2011 · 0 comments

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 ——- Equity Shares of Rs 5 each. The FPO is opening on 5th Apr 2011 and the shares will be available for subscription up to 8th Apr 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 10,800 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 IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Issue Detail:-
Issue Open : 5th Apr 2011 – 8th Apr 2011
Issue Type : 100% Book Built Issue IPO
Issue Size : —- Equity Shares of Rs 5 each
Issue Size : Rs 10,800 Crore
Face Value : Rs 5 Per Equity Share
Issue 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 :-As of today 10th March 2011, it is quite unlikely that we will be able to go the FPO route by the first week of April because we have a shortage of independent directors, without the compliance of the clause 49 of Sebi, we will not be able to file the DRSP. We are short of a minimum three independent directors. Therefore, without the independent directors we may not be able to go to the market.

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