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Each Share of ONGC to be Split into Two

The Indian government gave its approval to splitting each sgare of ONGC into two.

Nov 24, 2010 10:25 IST

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.