ONGC may move SEBI for Rs12,000-crore follow-on share sale next month

State-run oil explorer Oil and Natural Gas Corporation (ONGC) is expected to enter the market with a follow-on public offer of Rs12,000 crore worth shares next month, a company official said today.

"We have been asked to prepare for the follow-on public offer (FPO)," the official said. "The company board is meeting on 29 August to approve the consolidated accounts and the red herring prospectus will be filed with SEBI thereafter," he added.

The official said ONGC is ready with the prospectus for the follow-on offer and it could be filed early next month.

ONGC board meeting on 29 August will approve the red herring prospectus, incorporating financial results for the April-June quarter as well.

"We are prepared for the FPO and we are awaiting signal from the Department of Disinvestment," he said.

The government plans to sell 5 per cent (or 427.77 million shares) of ONGC's paid-up equity capital through the FPO.

The sale would also result in the government reducing its stake in ONGC to 69.14 per cent from the existing 74.14 per cent.