An Empowered Group of Ministers approved ONGC's share sale through a new process called “offer for sale shares by promoters through the stock exchange mechanism.”
The Petroleum Minister, Mr S Jaipal Reddy, after the ministerial panel meeting said ONGC's share auction will take place in a couple of days.
At the meeting, the panel finalised the floor price for share auction at Rs 290 a share.
Mr Reddy said that the auction process will be completed in a day. The Government plans to offload 5 per cent in ONGC. So, roughly 42.77 crore shares of ONGC will be offloaded in the market, which is expected to fetch Rs 12,000 crore considering current market price.
Under this mechanism, all categories of investors such as Institutional, High Net-worth Individuals, retail investor and employees can participate. But, the allocation will be done on the price priority basis. In other words the investors will be able to get the share at the price they quote, if quantity is available.