ONGC m-cap exceeds Karachi bourse m-cap

The market capitalisation of state exploration firm Oil and Natural Gas Corporation (ONGC) has exceeded the total market capitalisation of Karachi Stock Exchange (KSE).

ONGC's market capitalisation of over Rs 104,356 crore ($21.74 billion), at Wednesday's scrip closing price of Rs 731.85, is larger than the nearly $20 billion market capitalisation of Karachi Stock Exchange, industry sources said.

After veteran oil man Subir Raha took over the reins of the country's largest profit making company, ONGC has seen reversal of fortunes.

From Rs 138.55 a share on May 25, 2001, when Raha took over as chairman and managing director, the scrip touched an all-time high of Rs 767 on December 22.

Since then ONGC has left the Sensex heavyweights such as Reliance Industries (m-cap of Rs 68,534 crore), Indian Oil Corporation (m-cap of Rs 50,259 crore) and Hindustan Lever (m-cap of Rs 41,162 crore) way behind.

Apart from the international crude oil prices, which ruled at over $31 a barrel in the last few weeks, the integrated business model adopted by ONGC, which reduces the risk of the investment, has made it favourite with investors particularly institutional investors, they said.

Raha's leadership has also reversed the fortunes of ailing Mangalore Refinery and Petrochemicals Ltd (MRPL), which ONGC acquired in March 28, 2003.

The MRPL scrip, which was ruling at Rs 8.10 (m-cap of Rs 643.71 crore) on that day, has moved up to Rs 49 (m-cap of Rs 8578 crore).

The feat of ONGC crossing the Rs 1 lakh crore (trillion) mark in market capitalisation, has placed the firm in a selected list of companies.

During the tech boom, the market cap of it power-houses Infosys and Wipro had crossed this extraordinary milestone.

ONGC is today among the top 15 energy majors in the world, based on current market capitalisation. In fact, among the global integrated oil and gas majors, ONGC, with m-cap of $22 billion, ranks next only to Exxonmobil ($200 billion), Royal Dutch/Shell ($100 billion) and Chevron Texaco ($80 billion) in the world.

Analysts said the government decision to sell its 10 per cent stake in ONGC besides approving dissolution of the cross-holding between the state-owned oil companies, will increase liquidity of company scrip. Currently, the public float of ONGC shares is only 0.72 per cent.