ONGC slips as Govt to appoint merchant bankers for stake sale

ONGC fell 2.28% to Rs 406.60 at 11:09 IST on BSE after the government on Wednesday, 16 July 2014, invited bids from merchant banks to manage the sale of a 5% stake in the company.

Meanwhile, the BSE Sensex was down 2.65 points, or 0.01%, to 25,547.07.

On BSE, so far 1.98 lakh shares were traded in the counter, compared with an average volume of 7.02 lakh shares in the past one quarter.

The stock hit a high of Rs 415 and a low of Rs 405.35 so far during the day. The stock hit a record high of Rs 472 on 9 June 2014. The stock hit a 52-week low of Rs 234.40 on 28 August 2013.

The stock had underperformed the market over the past one month till 16 July 2014, falling 2.59% compared with 1.43% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 31.30% as against Sensex's 14.69% rise.

The large-cap company has an equity capital of Rs 4277.74 crore. Face value per share is Rs 5.

The Department of Disinvestment (DoD) which works under the Finance Ministry on Wednesday, 16 July 2014, issued request for proposals for engagement of merchant bankers for disinvestment of Government of India's 5% stake in oil exploration major ONGC. The stake sale will be through the offer for sale (OFS) route in the domestic market. GoI currently holds 68.94% stake in ONGC.

The merchant banker will be required to ensure best return to the government from the stake sale, the DoD said in notice inviting bids from merchant bankers. The merchant bankers will have to submit their bids by 6 August 2014.

ONGC's net profit surged 44.3% to Rs 4889 crore on 2.4% decline in net sales to Rs 20880.93 crore in Q4 March 2014 over Q4 March 2013.

ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas.

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