ONGC's Rs12,000-crore FPO to open on 20 September

Oil and Natural Gas Corporation's (ONGC) Rs12,000-crore follow-on public offer (FPO) of shares will open on 20 September and the state-run oil explorer is filing a red herring prospectus for the FPO today.

The government will sell 5 per cent (or 427.77 million shares) of ONGC through the FPO, which will close on 23 September.

The board of directors of ONGC had, last week, approved a red herring prospectus, incorporating the financials of the company till the April-June quarter.

The government will hold 69.14-per cent of ONGC's equity after the conclusion of the FPO, against the current 74.14- per cent stake it holds in the company.

For eligible ONGC employees and retail investors the stake sale will be at a 5-per cent discount.

Citigroup, Nomura Holdings, Bank of America Corp, HSBC Holdings, JM Financial Services and Morgan Stanley are managing the share sale.