ONGC strikes it rich on fresh KG find

DALAL STREET SPIKES

ONGC rose 4.69 per cent to close at Rs 854.6 on eight-fold growth in volumes of 9.3 lakh shares after the reports that it has struck a huge gas find in the Bay of Bengal. Initial estimates suggest that the find could be in the range of 21 trillion cubic feet.

ONGC is stepping up its exploration efforts both domestically as also overseas. ONGC Videsh, ONGC's overseas investment arm proposes to undertake joint exploration and production activities in Iraq with Reliance Industries.

According to market analysts, ONGC is one of the less expensive frontliners as it trades at a trailing 12 month P/E ratio of 12.3 times. The company's board is meeting on December 23 to consider an interim dividend.