Shares of Oil and Gas major ONGC slumped 3% to Rs 416 on the BSE on reports of disinvestment. Government has decided to disinvest 5% stake in the company via offer for sale (OFS) mechanism. The procedure of disinvestment is expected to be completed by the end of the month of September, a senior official of Finance Ministry said.
The Government currently holds 69% stake in the company and will possibly collect approximately Rs18,250 crore through the stake sale based on ONGC’s closing price of Rs 429.
Citigroup and HSBC are among five banks chosen to manage the planned sale of a stake in state oil company , three sources with direct knowledge of the development said on Monday.
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Shares of ONGC opened at Rs 431, touched a high of Rs 432 and a low of Rs 415 on the BSE so far. A total of 287,505 shares have been exchanged on the BSE so far.