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The ONGC miracle

Divestment of the oil major's shares raises many questions

The government’s sale of about five per cent of its shareholdings in ONGC last week, through an open auction on the trading platforms of the two stock exchanges, raises several questions, which the government and its advisers would do well to reflect upon. For a successful auction of the ONGC shares on offer, two basic criteria needed to be fulfilled: a realistic assessment of the demand based on the prevailing market conditions and an attractive pricing for the investors. The government needed to receive appropriate advice on these matters. It is not quite apparent from the way the ...