ONGC jumps 7% on FPO deferral: Reports
Shares in ONGC surged over 7% in opening trade on Friday on reports, the government has decided to delay the share sale
By Kshitij Anand, ET Online | Updated:
NEW DELHI: Shares in ONGC surged over 7% in opening trade on Friday on reports, the government has decided to delay the share sale, valued at around $2.5 billion due to poor market conditions.
"Weakening investor sentiment may lead to delay in FPO," said RS Sharma, Former CMD, ONGC, in an interview with ET Now. "Investors wary about subsidy sharing formula," added Sharma.
According to newswire reports on ET Now, the government is mulling to bring BHEL FPO ahead of ONGC.
According to analysts, if the FPO gets deferred, short sellers who wanted to play the arbitrage game will be forced to cut the short positions and that is why the stock has perked up in today's trade.
At 10:16 a.m., the stock was trading at Rs 278.95, up Rs 18.30 or 7%. The stock has hit a high of Rs 280 and a low of Rs 269.75
According to an ET report, Merchant bankers maintain that despite the fact that there is still no clarity on subsidy sharing formula for this fiscal, the road shows had indicated a high interest in the follow-on offer of the state-owned oil and gas explorer. "There was very good demand at 7-8% discount," said a banker on condition of anonymity. The EGoM) was to meet on September 16 to decide on the price band.
"Weakening investor sentiment may lead to delay in FPO," said RS Sharma, Former CMD, ONGC, in an interview with ET Now. "Investors wary about subsidy sharing formula," added Sharma.
According to newswire reports on ET Now, the government is mulling to bring BHEL FPO ahead of ONGC.
According to analysts, if the FPO gets deferred, short sellers who wanted to play the arbitrage game will be forced to cut the short positions and that is why the stock has perked up in today's trade.
At 10:16 a.m., the stock was trading at Rs 278.95, up Rs 18.30 or 7%. The stock has hit a high of Rs 280 and a low of Rs 269.75
According to an ET report, Merchant bankers maintain that despite the fact that there is still no clarity on subsidy sharing formula for this fiscal, the road shows had indicated a high interest in the follow-on offer of the state-owned oil and gas explorer. "There was very good demand at 7-8% discount," said a banker on condition of anonymity. The EGoM) was to meet on September 16 to decide on the price band.
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