ONGC loses Rs 2,700 cr in m-cap on Goldman report

State-run firm Oil and Natural Gas Corporation (ONGC) today saw an erosion of nearly Rs 2,700 crore in its market valuation with its shares tumbling two per cent, amid concerns raised by investment banker Goldman Sachs over corporate governance issues at the company.

On the Bombay Stock Exchange, ONGC scrip plunged over 1.90 per cent to settle at Rs 651.85. After opening firm at Rs 670 in the morning trade, the scrip witnessed a drop of over four per cent at Rs 637.15 in the intra-day.

A Goldman Sachs report has stated that it has reiterated a 'sell' on ONGC as it is known that the promoters (the government of India) have taken out $20 billion from the oil company without consulting its shareholders.

However, denying the allegations, ONGC CMD R S Sharma told business news channel CNBC TV 18 that the management had assigned highest priority to corporate governance issues.

He added the government decision is not conflicting with corporate governance issues.

The total market capitalisation of ONGC today stood at Rs 1,39,422.41 crore, whereas the same was at Rs 1,42,117.39 crore yesterday.

The second most valued public sector firm has a weightage of 4.75 per cent in the BSE's 30-scrip volatile index -- Sensex.