Govt plans to sell 5-10% stake in ONGC

Report published in Economic Times says it was not clear how much stake govt would eventually put on sale

India plans to sell a 5 to 10% stake in state-run energy explorer Oil and Natural Gas Corp in a deal that could fetch it as much as 350 billion rupees ($5.84 billion) at current market price, the Economic Times newspaper reported on Tuesday.

The newspaper said the finance ministry had suggested a 5% stake sale in ONGC in a draft proposal to a cabinet panel. The paper said it was not clear how much stake the government would eventually put on sale.

It cited an unnamed government official as saying the process of hiring bankers would be started soon. The government owns nearly 69% of ONGC.

 

An ONGC spokesman was not immediately available for comment.

Prime Minister Narendra Modi's government is expected to announce plans for up to a record $11.7 billion of stake sales in state-run firms in its maiden budget on Thursday, as it looks to bolster state finances.