Asserting that the disinvestment plan for state-run Oil and Natural Gas Corporation (ONGC) was on track, Petroleum Secretary S. Sundareshan on Friday said the Central Government planned to raise Rs.13,000 crore through the sale of 5 per cent stake in the company by March this year.
“There is absolutely no reason to believe that the follow-on public offer (FPO) is not taking place this fiscal. It is proceeding according to the plan and will hit the markets by the end of March,” he told reporters here.
His views were endorsed by Secretary, Department of Disinvestment, Sumit Bose, which is piloting the sale. “The kick-off meeting will be held on January 24. There is no change in the FPO schedule,” he said.
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As a precursor to the share sale, ONGC will split equity shares with a face value of Rs.10 each into two shares of Rs.5 each. It will also issue bonus shares in the ratio of one share for every share held. After the share split and bonus issue, the market value of ONGC's shares will dip to around Rs.275 as against today's [Friday's] closing price of Rs.1,105.05 on the Bombay Stock Exchange.