Oil and Natural Gas Corporation ( ONGC) fell as the government's 5% stake disinvestment in the oil exploration giant through auction route was subscribed 98.29%.
The government's plan to offload 5% stake in ONGC through the first ever auction conducted on Thursday (March 01, 2012).
The final demand was for 420.4 million shares against an offer of 427.7 million share. As reports earlier in the day were not encouraging with bids worth Rs8,500 crore (approx), the government appears to have nudged the public sector giants, including LIC, to pitch in with their bids and help the issue sail through.
The Government of India's stake in ONGC will decline to 69.22% from 74.14% if the all the shares tendered in the auction are accepted. The floor price for the auction sale was Rs290 per share. But the price at which investors had bid for the shares offered in auction process was not disclosed.
Under auction process, if the offer is not fully subscribed, the seller has the option either to accept the bids received or reject the entire auction process.
A joint press release issued by NSE and BSE after trading hours on Thursday stated that while the buy orders at both exchanges reflected a demand of 29.22 crore shares around the market lose, there were certain buy orders which were not immediately confirmed or were erroneously rejected by custodians due to a mismatch at the custodian end, even though, the orders were funded. After rectification of these errors, the final demand was for 42.04 crore shares.
The ONGC disinvestment is the second only after the government garnered Rs 1144.55 crore through the Power Finance Corporation stake sale. The government had set a target of mopping Rs 40000-crore through disinvestment for the year ending March 2012.
ONGC’s net profit fell 4.8% to Rs 6741.41 crore on 2.5% decline in net sales to Rs 18123.84 crore in Q3 December 2011 over Q3 December 2010.
....more info
The government's plan to offload 5% stake in ONGC through the first ever auction conducted on Thursday (March 01, 2012).
The final demand was for 420.4 million shares against an offer of 427.7 million share. As reports earlier in the day were not encouraging with bids worth Rs8,500 crore (approx), the government appears to have nudged the public sector giants, including LIC, to pitch in with their bids and help the issue sail through.
The Government of India's stake in ONGC will decline to 69.22% from 74.14% if the all the shares tendered in the auction are accepted. The floor price for the auction sale was Rs290 per share. But the price at which investors had bid for the shares offered in auction process was not disclosed.
Under auction process, if the offer is not fully subscribed, the seller has the option either to accept the bids received or reject the entire auction process.
A joint press release issued by NSE and BSE after trading hours on Thursday stated that while the buy orders at both exchanges reflected a demand of 29.22 crore shares around the market lose, there were certain buy orders which were not immediately confirmed or were erroneously rejected by custodians due to a mismatch at the custodian end, even though, the orders were funded. After rectification of these errors, the final demand was for 42.04 crore shares.
The ONGC disinvestment is the second only after the government garnered Rs 1144.55 crore through the Power Finance Corporation stake sale. The government had set a target of mopping Rs 40000-crore through disinvestment for the year ending March 2012.
ONGC’s net profit fell 4.8% to Rs 6741.41 crore on 2.5% decline in net sales to Rs 18123.84 crore in Q3 December 2011 over Q3 December 2010.
....more info