GAIL, ONGC issues in Feb-Mar

The government has decided that the public issues of energy majors GAIL India and Oil and Natural Gas Corporation (ONGC) will open February 23 and March 2, respectively, sources in the government and the companies said.

The ONGC issue is likely to be offered at a discount, and in lots of 10 equity shares each, against the normal practice of offering equity in lots of 100s and in multiples thereof.

The dates for the issues were fixed at two inter-ministerial group (IMG) meetings attended by representatives of the two companies, and advisors on Wednesday evening and today.

Sources said the draft red herring prospectus for the book-built issue of GAIL, which will remain open for five days, will be filed with the Sebi in the last week of January. Roadshows will be held across the country and some overseas locations in the middle of February.

The draft prospectus in ONGC's case will also be filed by the end of January. On Wednesday evening, the IMG decided that the ONGC float will be kept open for seven days, government sources said.

These decisions are expected to generate the interest of small retail investors in the issue which is expected to mop up around Rs 12,000 crore, they added. The ONGC issue comprising 14.2 crore shares will be the largest public issue in the country till date.

Meanwhile, Arun Shourie, the Union minister for disinvestment, communications & IT, talking to media on the sidelines of the CII Partnership Summit in Hyderabad today, said the public issues of ONGC and GAIL India Ltd will go ahead as planned despite the prospects of early polls for Lok Sabha.

Shourie said, "Elections will not come in the way, and both the public issues will be completed during the current fiscal as per the schedule."

Shourie also said the government was right on the target to sell residual stakes in companies that were privatised. "We are speeding up the process. We hope to complete it in the current fiscal," he added.

When asked about the possibility of selling the government's 18.10 per cent residual stake in Maruti Udyog to Suzuki Motor Corporation, Japan, the minister said that it may not be the case. " It may be offered to the public, but with fullest cooperation from Suziki."

Earlier addressing a session at the Partnership Summit, the minister said that the government will announce more new incentives to hardware, IT and telecom in the next budget.

He also indicated that the government will come out with a scheme to offer incentives for efficient utilisation of spectrum by telecom operators.