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Govt stake in ONGC down to 69% post sale

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 2:31 AM IST

Oil major ONGC today said the government's holding in the company has come down by 4.91% to 69.23% following stake sale last week.

Prior to the Offer for Sale, the government had 74.14% stake in ONGC.

The government sold 42.04 crore shares in ONGC and garnered Rs 12,766 crore, ONGC said in a filing on the BSE.

Of the 420.4 million shares auctioned last week, state-owned insurance giant LIC picked up 377.1 million shares in the company and its total holding has gone up to 9.48%.

Taking into account the average price of Rs 303.67 a share, the country's largest insurer would have invested around Rs 11,450 crore during the first ever auction of PSU shares on March 1.

LIC has bought 377.1 million shares representing 4.41% stake in ONGC through open market purchase.

The government auctioned 5% of its stake, or 447.7 million shares, in ONGC on March 1.

While the ONGC auction was subscribed 98.3%, LIC has picked up over 84% of the shares on offer. The remaining was bought by institutional and retail investors.

With the acquisition of 4.41%, LIC's stake in ONGC has gone up to 9.48%, the filing added. As per the Insurance regulator IRDA guidelines, an insurance firm's holding should not exceed 10% in any company.

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First Published: Mar 06 2012 | 1:46 PM IST

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