ONGC shares surged nearly 5 per cent on the bourses today, a day after the Government decided to offload 5 per cent stake in the company through auction.
Buoyed by the news, the scrip opened the day on a bullish note and gained further — up 4.76 per cent to Rs 297.05 on the BSE. On the NSE, it climbed 4.79 per cent to Rs 297.
ONGC was the best performing scrip on both the key indices, BSE and NSE, during the morning trade.
Yesterday, the Centre decided to offload five per cent stake in ONGC through the auction route on Thursday at a floor price of Rs 290 a share that could fetch the exchequer about Rs 12,000-13,000 crore.
The Government owns 74.14 per cent stake in ONGC and proposes to offload 427.77 million shares or 5 per cent equity.