ONGC scrip up 2.6% as FinMin appoints bankers for stake sale

Oil major ONGC's stock rose by 2.6 per cent today as the government's plan to divest stake in the company moved forward with the Finance Ministry appointing five merchant bankers for the Offer For Sale.
Shares of the state-run firm rose by 2.31 per cent to settle at Rs 427.75 on the BSE. During the day, it gained 2.79 per cent to Rs 429.80.
ONGC was the top gainer among the 30-Sensex scrips.
At the NSE, the stock was up 2.61 per cent at Rs 428.90 at the end of trade.
Marketmen said the gains followed reports that moving ahead with the 5 per cent disinvestment in ONGC - which may fetch the exchequer over Rs 17,000 crore - the Finance Ministry has appointed 5 merchant bankers including Citigroup and HSBC Securities for managing the stake sale.

UBS Securities, ICICI Securities and Kotak Mahindra Capital have also been selected for the job.
The merchant bankers will advise the government on the timing and modalities of the OFS and ensure best returns to the government, which holds 68.94 per cent stake in ONGC.
The Cabinet nod for the ONGC stake sale is expected shortly as the Petroleum Ministry has given in-principle approval for the stake sale.