ONGC auction disappoints, gets bids for Rs 8,500 cr worth shares | business | Hindustan Times
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ONGC auction disappoints, gets bids for Rs 8,500 cr worth shares

business Updated: Mar 01, 2012 18:02 IST

The auction for sale of government's 5% stake in ONGC today got bids for 29.22 crore shares worth about Rs 8,500 crore, but could fetch only about two-third of the targeted proceeds of over Rs 12,000 crore.

At the end of the one-day auction, the auction got total bids for 29.22 crore shares, including 19.92 crore on the NSE and about 9.3 crore on the BSE platform, exchange official said. The final figures were yet to be updated on the websites of the two bourses.

The government had proposed to sell about 42.77 crore shares through the auction at a floor price of Rs 290 a piece.

The total bids were worth about Rs 8,500 crore and accounted for 68.3% of the total offer size.

In the event of the total number of orders received at or above the floor price being less than the number of shares being offered for sale, the government would have the right to either conclude the sale to the extent of subscription or cancel the sale.

The shares would be allocated on 'price-priority' basis, meaning the bidders at highest price would be allotted shares.

The bids were mostly in the price range of Rs 290-293 per share for the auction, which commenced at 9.15 am and closed at 3.30 pm today.

The government had fixed a floor price of Rs 290 per share for the share sale through this one-day auction, wherein it was targetting to raise about Rs 12,000-13,000 crore.

The bidding began on a weak note and only about 37,500 shares were bid for in the first hour. Till 3 pm also, total bids had come in for only about 1.43 crore shares, but the momentum picked up in the last 30 minutes.