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    Govt to sell 1.5% stake in ONGC via OFS on Wednesday, may fetch Rs 3,000 crore

    Govt to sell 1.5% stake in ONGC via OFS on Wednesday, may fetch Rs 3,000 crore

    Govt to sell 1.5% stake in ONGC via OFS on Wednesday, may fetch Rs 3,000 crore
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    By Sapna Das   IST (Updated)

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    The government is launching the offer for sale (OFS) on Wednesday (March 30). The base offer size of the OFS will be 0.75 percent, including a 0.75 percent Green Shoe option. The government holds a 60.41 percent stake in ONGC.

    The Narendra Modi government on Tuesday said it's selling up to 1.5 percent stake in state-owned Oil and Natural Gas Corporation (ONGC) through an offer for sale (OFS), in a move that's expected to fetch Rs 3,000 crore to the exchequer in divestment receipts.
    The government is launching the offer for sale (OFS) on Wednesday (March 30). The base offer size of the OFS will be 0.75 percent, including a 0.75 percent Green Shoe option.
    The government owns a 60.41 percent stake in ONGC which produces half of India's oil and gas.
    "The promoter (the government) proposes to sell up to 94,352,094 equity shares of the company, (representing 0.75 percent of the total paid-up equity share capital of the company) on March 30, 2022 (to non-retail investors) and on March 31, 2022 (to retail investors) with an option to additionally sell 94,352,094 equity shares (in case of oversubscription)," it said.
    The floor price for the OFS has been set at Rs 159 per share. This price is at a 7 percent discount to the Rs 171.05 stock closing price of ONGC on the BSE on Tuesday.
    In the OFS, a minimum of 25 percent of the shares are reserved for mutual funds and insurance companies while 10 percent are earmarked for retail investors. Retail investors are defined as individual investor who bids for not more than 2 lakh shares.
    ONGC employees can apply for equity shares worth up to Rs 5 lakh each, the filing said, adding that 0.075 percent of equity shares sold in the OFS would be offered to eligible employees at the cut-off price.
    Union finance minister Nirmala Sitharaman had in her previous budget for 2020-21 set a target of raising Rs 2.1 lakh crore from privatisation and sale of minority stakes in state-owned companies. This includes Rs 1.20 lakh crore from selling a stake in CPSEs and Rs 90,000 crore from stake sale in financial institutions.
    So far this fiscal, the government has garnered Rs 19,499 crore through minority stake sale in CPSEs and share buybacks.
    Shares of ONGC ended at Rs 171.05, down by Rs 5.35, or 3.03 percent on the BSE.
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