FPO offerings in PSU oil companies not under consideration now: petroleum secretary

Oil Secretary S Sundareshan told reporters on Wednesday that the government had no immediate plans to sell stake in state-run Oil and Natural Gas Corp (ONGC) and Indian Oil Corp (IOC).

"There is no serious consideration (on follow-on public offerings in IOC and ONGC) at this juncture," he told reporters in New Delhi.

Both IOC and ONGC are not in favour of raising funds through the equity route because of the impact on valuations due to uncertain fuel pricing policy.

He added that market conditions were not right for FPOs.

IOC has plans to sell shares for shoring up its finances even as it prepares to face competition from private companies. The proposal comes amidst the government's talks of doing away with subsidies on petroleum products.

If the company manages to convince the government of its need for funds, it could also provide an opportunity to the government to sell some its holdings in the company.