(FE)
The Centre will likely sell a 5% stake in the country’s largest oil explorer ONGC in what could be one of its largest disinvestment exercises in the current fiscal. At current prices (the ONGC stock closed Rs 176.20 on Monday), the stake sale may fetch the exchequer Rs 11,300 crore.
The department of investment and public asset management (DIPAM) held roadshows in the US last week to reach out to potential investors for the proposed offer for sale (OFS) of the government’s stake in ONGC. The exact quantum of equity to be offloaded is, however, yet to be decided, a source said, adding that it could be 3-5%. While the government achieved the largest ever disinvestment revenue of Rs 1 lakh crore last fiscal, receipts have been subdued this fiscal — only Rs 9,220 crore has been collected so far, half the amount garnered by the same time frame last year. The target for this year is Rs 80,000 crore.
