Each Share of ONGC to be Split into Two
The Indian government gave its approval to splitting each sgare of ONGC into two.
The Indian government in November 2010 approved the splitting each share of Oil & Natural Gas Corp (ONGC) into two. With the decision, ONGC’s share worth was halved. The government’s decision made it attractive and affordable for retail investors ahead of the follow-on public offer (FPO) in which the government will divest 5% of its holding in 2011. The government wants a big retail participation in the ONGC FPO. ONGC’s stock had soared to a 52-week high of Rs 1472 on 28 September 2010 on BSE. The scrip rose 2.48% to Rs 1296.75 on 22 November 2010. ONGC appointed global consultants to certify its oil and gas reserves. The appointment of DeGolyer and MacNaughton (D&M) and Gaffney, Cline and Associates (GCA) as auditors projected the company’s preparedness for the FPO. The government expressed its intention to raise about Rs 11000 crore by selling its 5% shares in ONGC through an FPO by 31 March 2011. The government currently holds 74.14% in the company.