UTI steps in to meet ONGC shortfall

Over 3 lakh shares auctioned; UTI delivers at around Rs 864 per share.

Financial institutions, including the Unit Trust of India, have made a neat killing in ONGC shares put up for auction after a shortfall in deliveries.

According to market sources, UTI provided the bulk of the shares to meet the shortfall of around 328,000 shares auctioned, and could have made almost Rs 40 lakh in the bargain. UTI executives were not available for comment.

UTI delivered these shares at around Rs 864 per share, which was at a 1.4 per cent premium to yesterday's closing price of Rs 852.50.

Sources said, while 231,000 shares were auctioned at the National Stock Exchange, 98,060 shares were put up for auction at the Bombay Stock Exchange (BSE).

The shortfall had arisen after allottees in the recent ONGC offer could not make good deliveries for orders placed on the exchanges.

In addition to yesterday's auction, another 10,775 shares will be auctioned at the BSE and 47,363 shares will be auctioned at the NSE on Tuesday.

Despite yesterday's auction, the ONGC allotment imbroglio refuses to die a peaceful death. According to brokers and a few high networth individuals (HNI), some investors have still not received their allotted shares in their account.

A leading BSE broker, on conditions of anonymity said, " I have still not received the allotment. Nobody is giving us a clear answer as to what is the status. Also, one of my clients who had initially applied for 2,000 ONGC shares had still not received the 1,200 shares which MCS had promised to credit into his account latest by last Thursday."

At a high powered Sebi meeting on April 1, it was decided that the settlement for last Monday's trading session would proceed as scheduled and any shortfall was to be auctioned, with the financial institutions being asked to deliver the shares in auction so that the buyers could receive valid shares.