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ONGC auction gains momentum-news01032012


The auction for sale of the government's 5% stake in Oil & Natural Gas Corporation (ONGC) gained momentum by early afternoon, as bids came in for about 48 lakh shares.

The bids have been mostly in the price range of Rs291-293 per share for the auction, under which the government has proposed to sell about 42.77 crore shares. The auction commenced at 09:15 am and would close at 03:30 pm today (March 1, 2012).

The government has fixed a floor price of Rs290 per share for the share sale through this one-day auction, wherein it is targetting to raise about Rs12,000-13,000 crore.

At 12:45 pm, bids had come in for a total of 47.7 lakh shares.

The early morning bids had come in the price range of Rs292-294 a piece, but the price fell to Rs291-292 by late morning.

In the first hour of auction, bids had come in for about 37,500 shares, while it rose to about 1.7 lakh by the end of second hour of the bidding.

The bidding picked up momentum by the mid-day and bids for more than 10 lakh shares had come in at 12:00 noon.

Investment bankers said that the bidding was expected to gain further ground in the last 2-3 hours.

After an initial spike of about 1%, ONGC shares had turned weak and was trading 0.6% down at Rs291.50 at 12:50 pm. The stock price has remained above the floor price of Rs290 and had touched a high of Rs296.50 within minutes of market opening this morning.
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