Oil and gas PSU stocks today bucked the general market trend and moved higher on reports that the government is planning to sell off partial stakes in some blue chips among them this year.
Oil and Natural Gas Corporation (ONGC) closed up 1.03 per cent at Rs 349.45 after hitting an intra-day high of Rs 365.
Similarly Indian Oil Corporation (IOC) closed higher by 1.53 per cent at Rs 203.05 after hitting an intra-day high of Rs 208.50 and Gas Authority of India Limited (GAIL), which had hit an intra-day high of Rs 77 before settling lower by 1.15 per cent at Rs 73.30. Gain shed gains of profit booking, dealers said.
According to reports, the disinvestment ministry has proposed that the government raise Rs 26,500 crore in the current fiscal by selling 10-25 per cent stakes in the undertakings.
On Thursday, divestment minister Arun Shourie proposed that the entire selloff in these PSUs should be completed by 31 March 2003, through a mixture of domestic and ADR/GDR issues. These proposals are part of a note, which will be considered by the cabinet committee on disinvestment (CCD) at its next meeting, expected tomorrow.
The government holds around 84 per cent, 82 per cent and 67 per cent in ONGC, Indian Oil and GAIL, respectively. These stakes are expected to be brought down by 25 per cent in ONGC and Indian Oil.
Such a sale would fetch the government Rs 13,000 crore and Rs 4,400 crore, respectively. In the case of GAIL, the department of divestment proposes to sell 15 per cent stake in order to raise around Rs 1,000 crore.
An early sale could be effected in these companies as they are already listed on the exchanges and, hence, less preparatory work is needed in their sale.
Analysts said the rise in PSU stocks comes on the government's keenness to speed up its divestment drive. Earlier, ONGC, IOC and GAIL had been ruled off the divestment agenda on 'strategic' grounds.
