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ONGC share FPO deferred till second half of the year  

The government has deferred the share sale of state-owned Oil and Natural Gas Corporation (ONGC) to the second half of 2011 following a faux pas in the appointment of independent directors on the company board.

However, the petroleum ministry on Thursday, cleared the appointment of T Chandrasekharan, professor at Indian Institute of Technology, as an independent director on the board of ONGC to meet the requirement of capital market regulator Sebi. The appointment will now have to be cleared by the Prime Minister’s Office.

The government plans to sell 5%, or 427.77 million equity shares, through the follow-on public offer (FPO) to raise up to R12,000 crore.

“The share sale was to open on April 5, but has now been deferred. It is now likely in the second quarter of 2011-12,” an official with direct knowledge of the matter said.

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