Roadshows start for ONGC divestment

The government started roadshows for the sale of its ten per cent stake in Oil and Natural Gas Corporation (ONGC).

The offer for sale is expected to raise more than Rs 12,000 crore (around $2 billion), making it the biggest public float in the history of the Indian capital markets.

The book-building process for the offer will start from March 5 and close on March 13. The price band/ floor price would be announced at least a day prior to the bid opening date.

The government currently holds around 84.11 per cent in the company. Kicking off the roadshows for the public issue, Union divestment secretary Dhirendra Singh said, "The process of divestment through public offering is likely to make the capital markets more vibrant and increase the presence of retail investors in the market."

ONGC chairman and managing director Subir Raha said that about 10 per cent of the total offer is reserved for permanent employees and wholetime directors of ONGC, while another 10 per cent is reserved for the shareholders of MRPL.

The net offer to the public is up to 11.40 crore equity shares, of which 50 per cent would be allocated on a discretionary basis to qualified institutional buyers, 25 per cent would be available for allocation on a proportionate basis to non-institutional bidders and about 25 per cent for allocation to retail bidders.