The government is set to raise Rs 3,000 crore from the sale of its 1.5 per cent stake in Oil and Natural Gas Corporation Limited (ONGC), India’s largest oil and gas production company, with offers for sale (OFS) opening on March 30 and 31, according to regulatory filings.
The reserve price set for OFS is Rs 159 per share, which suggests about 7 per cent discount from ONGC’s closing share price of Rs 171 on the NSE on Tuesday. ONGC shares fell more than 3 percent on Tuesday from 176.35 on Monday.
ONGC employees can apply for equity shares worth up to Rs 5 lakh each, the filing said, adding that 0.075 per cent of equity shares sold in OFS will be offered to eligible employees at a deductible price, the company said in a stock exchange filing on Tuesday.
In OFS, at least 25 per cent of shares are reserved for mutual funds and insurance companies, while 10 per cent is reserved for retail investors.
The government, which owns more than 60 per cent stake in ONGC, is the organizer that sold 0.75 per cent of the total paid -up equity share capital, or up to 94,352,094 shares of the company’s equity, of its stake in the company.
The offer is open to non -retail investors today and retail investors (defined as investors who bid no more than 2 lakh shares) tomorrow, and if oversubscribed, it has retained the option to sell 94,352,094 shares of equity in addition.
The OFS was made a day after ONGC Videsh, the overseas investment arm of Oil and Gas Asli Corp., sold at least one cargo of Russian Sokol oil to state referees Hindustan Petroleum Corporation and Bharat Petroleum Corporation after failing to attract interest in tenders earlier this month.
Indian companies are taking Russian oil because it is available at huge discounts after some companies and countries avoided purchases from Moscow because of sanctions against Russia because of its Ukrainian aggression.
The world’s third -largest oil consumer and importer, India, does not ban Russian oil imports.