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ONGCdisinvestmentunlikelythisfinancial

year
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ByPTI|8Feb,2015,11.57AMIST

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NEWDELHI:
Thedisinvestmentof5percentstakeinstate
runONGCappearsunlikelythisfiscalastheliquidity
situationinthemarketisunderstressafterrecentmega
sharesaleswhilethesubsidyissueremainsunresolved.
"TheCILdisinvestmentandHDFCBank BSE0.55% fund
raisinghavesuckedoutliquidityfromthemarket.Thereis
unlikelythatthemarket,especiallyFIIs,wouldhave
appetiteremainingafterthesetwobigticketsharesales,"
asourcesaid.

ThegovtonJanuary30soldtenpercentstakeinCoalIndia
throughanofferforsaleandraisedRs22,558crore,closeto
onethirdofwhichcamefromFIIs.

ThegovernmentonJanuary30soldtenpercentstake
inCoalIndia BSE0.30% throughanofferforsaleandraised
Rs22,558crore,closetoonethirdofwhichcamefrom
FIIs.WhileoverseasinvestorsputinaboutRs6,000crore,
retailinvestorspumpedinclosetoRs2,000croreinthe
issue.
ThiswasfollowedbyHDFCBankofferingonFebruary5.
TheleadingprivatesectorbankraisedRs10,000crore
fromamixofAmericanDepositoryReceipts(ADRs)
andQualifiedInstitutionalPlacement(QIP).

SteelAuthorityofIndia(SAIL)Ltd.
BSE

NSE

73.65

73.50

0.75(1.01%)

0.85(1.14%)

Vol:166492sharestraded

Vol:1433762sharestraded

Prices | Financials | CompanyInfo | Reports

ETSPECIAL: What'sbuzzinghotonBudget
2015?Checkoutourindepth
coverage

"Therewereplansfortwobigticketdisinvestmentsthis
fiscal.Wecouldpullonethrough.Theotherlooksdifficult,"thesourceadded.
Thegovernmentwastosell5percentofitsstakeinONGC,thecountry'sbiggestoilandgasrefiner,to
raiseRs17,00018,000crore.However,thedoubleimpactoftumblingglobaloilpricesandtherising
subsidyburdenhasleftsharesofONGCbattered.

ONGC'ssharepricehasslippedfromits52weekhighofRs472inJune2014toRs350.95,adropof
over25percent.Atcurrentprices,thegovernmentwillgetaboutRs15,000crorefromthestakesale.
TheONGCstockhasalsobeenimpactedbecauseoflingeringsubsidyburden.Thecompany,asperthe
presentformula,hastoshelloutUSD56perbarreltohelpsubsidiseLPGandkerosene.However,with
internationaloilpricesslumpingtolessthan$50perbarrel,itspresentnetrealisationisinthenegative.
Elaboratingfurther,thesourcesaidforeigninvestorshavebetheavilyinHDFCBankfundraising,leaving
notenoughdepthandliquidityinthemarket.
WhileslumpingglobaloilpricesmakeprospectsofastakesaleinONGCgrimmer,thegovernmenthas
linedupfiveotherstaterunfirmsIndianOilCorporation(IOC),BharatHeavyElectricals(BHEL),
NationalAluminium(Nalco),andDredgingCorporation(DCIL)fordisinvestmentinFY'15.
Thegovernmentplanstosella10percentstakeinIOC
and5percentstakeeachinBHEL

BSE0.85%

BSE1.52%

,NMDC

BSE3.20%

aswellasNalco,

andDCIL.

InMarch2012,thegovernmentraisedRs12,767crorethroughauctioningofsharesinoilmajorONGC
andstaterunLIChadsubscribedtoahugechunkoftheissue.
LIChadpickedupover84percentofthesharesonoffer.Thebalancewasboughtbyinstitutionaland
retailinvestors.
Sofarthisfiscal,thegovernmenthasraisedaboutRs24,400crorethroughstakesaleinCILandSAIL
BSE1.01% .ThedisinvestmentdepartmentisracingagainsttimetomeetthebudgetedtargetofRs43,425
croreinlessthantwomonths.