14 merchant bankers line up to manage ONGC stake sale

Aug 21 2014, 00:37 IST
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SummaryAs many as 14 merchant bankers, including Citigroup Global, Barclays and Morgan Stanley, have made a beeline for managing the 5% stake sale of ONGC, which could fetch over R17,000 crore to the exchequer.

As many as 14 merchant bankers, including Citigroup Global, Barclays and Morgan Stanley, have made a beeline for managing the 5% stake sale of ONGC, which could fetch over R17,000 crore to the exchequer.

Others who have applied for the job include Deutsche Equities, HSBC Securities, Nomura Financial, JM Financial and SBI Capital.

Shares of ONGC today closed at R423.80, down 2.62% over the previous close on the BSE. At the current market price, a 5% stake sale or over 42 crore would fetch about R17,800 crore to the exchequer.

The merchant bankers would advise the government on the timing and the modalities of the Offer For Sale (OFS) and ensure best return to the government.

The disinvestment department will appoint up to five merchant bankers to manage the OFS. The government currently holds 68.94% stake in ONGC.

The Cabinet nod for ONGC stake sale is expected shortly as the petroleum ministry has given in-

principle approval for the stake sale.

The government had last sold 5% stake in ONGC in 2012 for R14,000 crore.

In the current fiscal the government plans to mop up R43,425 crore from selling stake in PSUs.

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