ONGC falls short in chaotic share shale
The floor price for the auction had been set at 290 rupees late on Tuesday, a 2.3 percent premium to the day's closing price, prompting criticism that it should have been priced at a discount to ensure success. Still, market watchers had expected big institutions like state-run Life Insurance Corp of India (LIC) and State Bank of India to take up any shares in the event of weak demand. I think greed played out here. "This should be one of the lessons, not to try and price the offering at a premium, especially when a reference point is available in the market price," said Ambareesh Baliga, chief operating officer at Mumbai's Way2Wealth Securities. Market commentators slammed the government's handling of the long-delayed sale, which was conducted via auction on the stock exchanges a first-of-its kind process in India
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