ONGC withdraws FPO papers, to file again if asked

State-owned Oil and Natural Gas Corp (ONGC) has withdrawn the papers it filed for a government share sale, but will file the red herring prospectus (RHP) again if instructed, Chairman and Managing Director Sudhir Vasudeva said today.

"This (withdrawal of RHP) is technical. The document filed in September had a validity of 90 days and so we have withdrawn it. It is no reflection if the follow-on offer (FPO) is coming or not," he told reporters here.

"If and when required, we will file it again," he said, adding that the timing will have to be decided by the Department of Disinvestment.

In September, ONGC had filed the RHP for the FPO through which the government plans to sell a 5% stake, or 427.77 million shares, in the company. The FPO was to open on September 20, but was put off days ahead of its opening due to market uncertainty.

"We are ready for the share sale as and when it is decided by the DoD," Vasudeva said.

After the FPO, the government's stake in ONGC will come down to 69.14% from the current 74.14%.

The government plans to raise at least a fourth of its Rs 40,000 crore divestment target for the current fiscal from the 5% stake sale in ONGC.

The share sale has been deferred several times this year. It was supposed to happen in December, but this is unlikely because the company does not meet market regulator Sebi's listing norm for half of its board to be made up of independent directors.

Three of ONGC's directors -- S Balachandran, SS Rajsekar and Santosh Nautiyal -- ceased to be directors on the company's board on November 10 after expiry of their three-year term.

Their replacements are yet to be named as the proposal is awaiting a nod from the Cabinet Committee on Appointments (ACC).