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ONGC to Save Indian Govt

Indian govt is reeling under the pressure of fiscal deficit and they are trying to find the ways and means to bridge the gap between expenses and receipts.

In order to augment their receipts Indian govt has been able to get a life line with  empowered group of ministers (EGoM) clearing the auction 5 per cent stake in ONGC on the exchanges and same is valued at Rs 12,000 crore.

Rule for Selling

  • 25 per cent of the offer size has been reserved for mutual funds and insurance companies in order to facilitate larger institutional participation.
  • No single bidder other than MFs or insurance companies would be allowed more than 25 per cent of the offer size

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