Govt to study ONGC auction before lining up more companies

NEW DELHI: With the ONGC disinvestment barely scraping through, Finance Minister Pranab Mukherjee, Friday said the government has decided to study the auction process before going ahead with stake sale of other companies. “This (ONGC auction) is the fi rst case. We shall have to analyse and then make assessment,” Mukherjee told reporters here. The share sale of ONGC scraped through with largest insurer LIC coming to the rescue at the last moment. Mukherjee had yesterday said that the stake sale was subscribed 98.3 percent yielding government Rs 12,733 crore. Against an offer of 42.77 crore shares, the fi nal demand was for 42.04 crore shares. Out of this LIC has reportedly purchased 41 crore shares. The government has already asked Sebi to investigate the technical glitches that led to confusion about the subscription of ONGC share auction. On account of the rush towards the close of the bidding process, the stock exchanges failed to upload the subscription amount leading to confusion about the total quantum of bids. The government late night clarifi ed that the auction has been successful and they have been able to raise the targeted amount. With the ONGC disinvestment going through the government has raised Rs 13,878 crore through stake sale in PSUs in the current fi scal. The government had set a target of mopping up Rs 40,000 crore from disinvestment in the current fi scal. The government is still toying with the idea of raising money through buyback under which the cash rich blue chip PSUs will be asked to buy government’s stake.