Citi, HSBC, UBS among 5 bankers to manage ONGC share sale

The disinvestment department has selected five merchant bankers, including Citigroup and ICICI Securities for managing the 5 per cent stake sale of ONGC, which could fetch about Rs 18,000 crore to the exchequer.
Besides, UBS Securities, Kotak Mahindra Capital and HSBC Securities have also been shortlisted for the job, according to sources.
As many as 14 merchant bankers today made presentations before the disinvestment department for managing the ONGC stake sale.
Shares of ONGC today closed at Rs 428.75, up 0.45 per cent over previous close on the BSE.
At the current market price, a 5 per cent stake sale or over 42 crore would fetch about Rs 18,000 crore to the exchequer.

The merchant bankers would advise the government on the timing and the modalities of the Offer For Sale (OFS) and ensure best return to the government.

The government currently holds 68.94 per cent stake in ONGC.
The Cabinet nod for ONGC stake sale is expected shortly as the Petroleum Ministry has given in-principle approval for the stake sale.
The government had last sold 5 per cent stake in ONGC in 2012 for Rs 14,000 crore.
In the current fiscal the government plans to mop up Rs 43,425 crore from selling stake in PSUs.