ONGC slumps as OFS begins

ONGC fell 4.27% to Rs 163.75 after the offer for sale (OFS) opened for non-retail investors today, 30 March 2022.

Through the OFS, the Government of India proposes to sell up to 9,43,52,094 equity shares (representing 0.75% stake), with an option to sell an additional 0.75% stake or 9,43,52,094 equity shares in case of oversubscription.

The floor price for the sale has been set at Rs 159, at over 7% discount to the stock's closing price of Rs 171 on Tuesday.

The total OFS size (base size + green shoe) stands at 18,87,04,188 shares, representing 1.5% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 3000 crore.

The Government of India held 60.41% stake in ONGC as of 31 December 2021.

The OFS opened on Wednesday (30 March 2022) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (31 March 2022).

Equity shares representing 0.075% equity in the company have been reserved for eligible employees of the PSU.

As on 10:50 IST, the OFS received subscription for 83,73,743 shares. It was subscribed 9.86% on the base non-retail offer size of 8,49,16,884 shares and 4.93% on the total non-retail offer size (base size + green shoe) of 16,98,33,769 shares.

ONGC is India's largest integrated oil and gas company. Its consolidated net profit surged 334.12% to Rs 10,931.61 crore on 45.27% rise in net sales to Rs 145,685.58 crore in Q3 December 2021 over Q3 December 2020.

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