ONGC puts hold on its follow on share sale, no reason disclosed
The government had decided to delay the share sale, valued at around $2.5 billion due to poor market conditions, a source said.
By Agencies | Updated:
MUMBAI: State-run explorer Oil and Natural Gas Corp said on Friday it has deferred its follow on share sale, but did not disclose any reason for the delay.
The government had decided to delay the share sale, valued at around $2.5 billion due to poor market conditions, a source had told media late on Thursday.
Shares in ONGC surged over 7% in opening trade on Friday on reports.
ONGC said the selling shareholder -- the government -- would evaluate its decision in due course.
However economic affairs secretary, Mr R. Gopalan, said the FPO was not called off indefinitely and Markets shuld not get hampered on disinvestment news.
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.
The government had decided to delay the share sale, valued at around $2.5 billion due to poor market conditions, a source had told media late on Thursday.
Shares in ONGC surged over 7% in opening trade on Friday on reports.
ONGC said the selling shareholder -- the government -- would evaluate its decision in due course.
However economic affairs secretary, Mr R. Gopalan, said the FPO was not called off indefinitely and Markets shuld not get hampered on disinvestment news.
According to newswire reports on ET Now, the government is mulling to bring BHEL FPO ahead of ONGC.
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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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