Government decides to study the ONGC auction before further stake sales

Published: March 3, 2012

Government  to study the ONGC auction process before moving ahead with further stake sale of companies. With LIC (Life Insurance Corporation) coming to the rescue the last moment, the share sale of ONGC was finished completed successfully.

Govt has also demanded an investigation by SEBI for the technical bugs that led to disarray about the subscription of ONGC share auction. , Owing to the rush towards the close of the bidding process, the stock exchanges were unable to upload the subscription amount which led to confusion about the total count of bids.

Government clarified that the auction was at last productive and the aimed amount was raised.  The ONGC stake sale was subscribed 98.3% thus yielding the government Rs 12,733 crore. Against an offer of 42.77 crore shares, the final demand was for 42.04 crore shares and the LIC reportedly purchased 41 crore shares. Via stake sale in PSUs in the current fiscal, till now the Government has raised Rs 13,878 crore. Via Disinvestment, the Target set up by the Govt for the current Fiscal was Rs 40K Crore.