Government to raise Rs 24,000 crore by offloading equity in oil companies
New Delhi, Aug. 10 ::::: If ONGC and Indian Oil Corporation's stake sale come through this fiscal, the Government would have raised about Rs 24,000 crore in less than 12 months by offloading equity in companies under the Ministry of Petroleum and Natural Gas. The Government is likely to further dilute its stake by 5 per cent in ONGC sometime this fiscal.“At the current share price, the stake stale will generate more than Rs 13,000 crore,” Mr R.S. Sharma, ONGC Chairman and Managing Director, told newspersons at the sidelines of an event here.The Government holds 74.14 per cent stake in ONGC.Also on radar is 10 per cent dilution in IOC, in which the Government currently holds 78.92 per cent.
Recently, the Petroleum Secretary, Mr S. Sundareshan, was quoted as saying that the dilution of stake in ONGC and IOC would help raise about Rs 21,000 crore this fiscal. The Department of Disinvestment has sent a note to the Petroleum Ministry asking the Finance Ministry to dilute the Government's stake in ONGC and IOC, he said.Others on the listThe Government is also mulling a stake sale in public sector enterprises such as MMTC Ltd and Shipping Corporation of India.“Government is considering stake sale through public offerings in MMTC Ltd, Coal India Ltd, Steel Authority of India Ltd, Shipping Corporation of India, Power Grid Corporation of India Ltd, Manganese Ore India Ltd and Hindustan Copper India Ltd,” said the Minister of State for Finance, Mr Namo Narain Meena, in a written reply to the Rajya Sabha.The Cabinet has already given its nod for Government's stake sale in Coal India, Steel Authority of India Ltd, Power Grid Corporation and Hindustan Copper, while the government has already shortlisted merchant bankers to manage MOIL IPO.
The follow-on public offer of 10 per cent stake sale in Engineers India Ltd mopped up Rs 977 crore. In 2009, Oil India Ltd IPO of 11 per cent had raised Rs 2,777 crore.The Department of Disinvestment will bear the brokerage expenses paid to brokers and sub–brokers in all Government public issues. This decision, which is effective April 2010, is aimed at ensuring widest participation of retail investors in Government public issues, an official release said here on Tuesday.The disinvestment department has directed the book running lead managers to pay the brokerage as per a specified time schedule. For issue size up to Rs 1,000 crore, the brokerage has to be paid within 30 days from the day of listing. In the case of issue size more than Rs 1000 crore, the brokerage has to be paid within 45 days from the day of listing, the release added.
http://www.thehindubusinessline.com/2010/08/11/stories/2010081152551200.htm
