ONGC FPO to hit mkt on Sept 20
Oil and Natural Gas Corp's much-delayed Rs11,000-crore share sale is likely to be launched on September 20, with the state-run explorer filing papers for the public issue with the Securities and Exchange Board of India on Monday. More cash for expansionbusiness Updated: Sep 05, 2011 23:18 IST
Oil and Natural Gas Corp's (ONGC) much-delayed Rs11,000-crore share sale is likely to be launched on September 20, with the state-run explorer filing papers for the public issue with the Securities and Exchange Board of India (SEBI) on Monday.
"ONGC filed a 610-page red herring prospectus (RHP) with SEBI today," said a source close to the development.
The follow-on public offer (FPO) is likely to open on September 20 and close on September 23.
A Group of Ministers headed by finance minister Pranab Mukherjee is likely to decide on the price band for the FPO on September 16 and the issue price would be fixed on September 25.
Promotional roadshows for the FPO will be held in the US, Singapore, Hong Kong and London. The same will be held in Mumbai on September 19 and in New Delhi the next day.
According to sources, the RHP incorporates the financials of the company till the April-June quarter.
The FPO was originally planned for launch in fiscal year 2010-11, but was later deferred to April 5 as the company did not have adequate number of independent directors on its board to meet market regulator SEBI's listing norms. It was then rescheduled for July 5, but was again deferred due to adverse market conditions.
The government had in January appointed Citigroup, Nomura Holdings, Bank of America Corp, HSBC Holdings, JM Financial Services and Morgan Stanley to manage the share sale.
The government's ad-hoc subsidy sharing mechanism has cast a shadow over ONGC's share sale during recent months.
ONGC posted a 12% rise in first quarter profit, helped by higher crude oil and gas prices, but has seen its profit growth slow in recent quarters due to state-set fuel prices, which are lower than market rates.