NEW DELHI: The government on Tuesday informed that it is going to sell 1.5% equity stake of Oil and Natural Gas Corporation (ONGC) through an offer for sale (OFS) to raise up to Rs 3000 crore. It will launch the offer for sale on 30 March 2022, in which 19 crore shares at a floor price of Rs 159 per share will be on sale. “Offer for Sale’ for 1.5% equity stake sale in ONGC, including 0.75% Green Shoe option opens tomorrow. Retail investors can bid on Thursday,” tweeted secretary DIPAM.
Right now, the government holds a 60.41% stake in ONGC, after this deal it will be left with 58.91% stake in the company. The company would offer to sell 94.3 million shares or 0.75% stake for non-retail investors on Wednesday and an additional 94.3 million or 0.75% would open for retail investors on Thursday.
The floor price for the sale has been set at Rs 159, at about 7% discount to the stock’s closing price of Rs 171 on Tuesday. The state-owned oil and gas company said equity shares representing 0.075% equity in the company have been reserved for eligible employees of the PSU.
The employees can apply for equity shares worth up to Rs 5 lakh each. It has reserved 25% of the shares for mutual funds and insurance companies while 10% for retail investors. Institutional or non-retail investors will get an option to carry forward their unallocated bids to the next day for allocation from the unsubscribed portion for retail investors.
The issue will open for retail investors on March 31. The sale is the part of government divestment target of Rs 78,000 crore for FY22. It has only garnered Rs 12,424 crore in divestment receipts this year.