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.