BUSINESS

ONGC expects good response to public offer

NEW DELHI, FEB. 26. With plans to invest Rs. 10,000 crores every year to enhance its oil and gas production, Oil and Natural Gas Corporation is anticipating a good response to the public offering of 10 per cent government shares as it goes to public on March 5.

Addressing a media conference here today, the ONGC Chairman and Managing Director, Subir Raha, exuded confidence that the public issue of 142 million equity shares would be over-subscribed and said this view had been endorsed by the issue's book running lead managers, DSP Merrill Lynch and JM Morgan Stanley, who saw the huge potential in the company attracting investors.

Mr. Raha said 10 per cent of the 142.59 million equity shares being offered had been reserved for employees of the company and an equal amount for shareholders of ONGC and its subsidiary MRPL. Of the remaining 114.07 million shares, 50 per cent will be available for allocation on a discretionary basis to qualified institutional buyers, 25 per cent for non- institutional bidders and the remaining 25 per cent for retail investors.

The issue will close on March 13 and the Government will decide on a band of bidding or a floor price a day prior to the opening of the issue, he said.

PTC fixes price band at Rs. 14-16

The Power Trading Corporation of India today said it would be offering its 5.85 crore equity shares of Rs.10 each at a price band of Rs.14-16. Through its Initial Public Offer (IPO), to open on March 1 and close on March 8, the corporation plans to raise Rs. 93.60 crores.

Speaking to presspersons here, the PTC's Chairman and Managing Director, T. N. Thakur, said, "We are confident that investors will appreciate our business model and through the IPO we hope to widen our investor base. We have stable business model and a strong set of promoters. So far we have achieved a tremendous growth and the corporation's network will also be widened.''