ONGC OFS has been subscribed 1.6 times; It will be open to retail investors on Thursday

The Oil and Natural Gas Company (ONGC) offer for sale (OFS) received 303 million requests from investors – 1.6 times the 188.7 million shares that were frozen by the government.

The sale of shares will add over Rs 3,000 crore to the government’s divestment fund. Most of the bids in OFS came in around Rs 160 per share, just above the base price of Rs 159 set by the government.



ONGC shares fell more than 5 per cent to close at Rs 162.25.

After selling the shares, the government’s stake in the oil and natural gas company will decrease from 60.41 percent to 58.91 percent.

Nearly 19 million shares, worth Rs 300 crore, reserved for retail investors will be sold at auction on Thursday. Unsubscribed shares in the retail class, if any, will be allocated to non-individual investors.

ICICI Securities, Citibank, Kotak Mahindra Capital, HSBC and UBS acted as commercial bankers for OFS. Prior to the sale of the ONGC stake, government divestment receipts amounted to Rs 12,424 crore for the period 2021-22.

The revised divestment target for this financial year has been set at Rs 78,000 crore. However, the target will be significantly below par as LIC’s massive IPO has been pushed into the next fiscal year due to higher market volatility in the wake of Russia’s attack on Ukraine.

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our determination and our commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *