*NEW DELHI :* Indian government is once again on the verge of raising funds by equity dilution in the two of the ‘Navaratna’ category companies.
India’s petroleum secretary, S Sundareshan on Friday hinted at a stake-sale in the public sector energy companies, Oil & Natural Gas Corporation Ltd (ONGC) (BOM: 500312) and Indian Oil Corporation (IOC) (BOM:530965) to raise about Rs.20,000 crore in the current fiscal. The process of a further public offering (FPO) has been taken up to sell 5% of the government stake in ONGC and 10% in IOC. "We have received a proposal for stake sale in these two companies from the Department of Disinvestment. The ministry is studying it and an approval will be taken from Petroleum Minister Murli Deora," S Sundareshan, petroleum secretary was quoted by the media. The disinvestment in ONGC will take place via a follow-on public offer (FPO) of 10.6 crore equity shares, which was priced at Rs.1,231.70 per share on Friday. This would fetch the government Rs.13,056 crore. Meanwhile, in IOC, the department has proposed to sell 10% of the government holding through an FPO, constituting 19 crore shares to raise Rs.6970 crore, besides the company also proposes to offload 10% of its own stake, which would constitute of 242.7 million shares and at the Friday’s closing price of Rs.366.85 a share will help the company to raise Rs.8,903 crore. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
