ONGC not ready for overseas issue: Raha

Oil and Natural Gas Corporation (ONGC) was not prepared for an overseas float in the current financial year, ONGC Chairman Subir Raha told Business Standard yesterday.

The public sector oil and gas major does not comply with the Generally Accepted Accounting Principles followed in the US, which disqualifies it from floating an American Depository Receipt (ADR) issue.

On the other hand, it is not prepared to make a Global Depository Receipt (GDR) float in such a short time, i.e., in the next 90 days up to March 31, 2004. "We will not get enough time to conduct roadshows and create publicity abroad," Raha explained.

Earlier this week, the ONGC board of directors discussed the proposed public issue, already cleared by the Cabinet, and was apprised of its preparedness, company sources said.

Immediately after the Cabinet Committee on Disinvestment had cleared the disinvestment plans for ONGC and GAIL, disinvestment minister Arun Shourie had said that there could be an overseas float (of around 5 per cent or so) if it was felt that the domestic market could not absorb such a huge offering.