Govt trying for ONGC stake sale this fiscal: Divestment Secy

The government today said it is working on various options, including the auction route, for raising about Rs 10,000 crore through stake sale in oil major ONGC in the current fiscal.

"We are trying our best to bring it (ONGC stake sale) in the current fiscal," Disinvestment Secretary Mohammad Haleem Khan told reporters.

The government holds a 74.14 per cent stake in ONGC and post the 5 per cent stake disinvestment, its holding would come down to 69.14 per cent.

At the current market price of Rs 280 a piece, the stake sale would fetch the government over Rs 10,000 crore.

It is likely that the government would adopt the auction route to sell stake in ONGC.

Market regulator Sebi has issued norms allowing promoters to sell stake by way of auction, through a separate window on the BSE and the National Stock Exchange that has to be completed within a day.

The Sebi guidelines are aimed at allowing promoters of top 100 listed companies to dilute their holding and help them comply with the minimum public shareholding stipulation.

When asked if the government would have to go for a fresh Cabinet approval for selling stake in ONGC via auction route, Khan said that it is can sell stake in any manner as permitted by Sebi.

"The CCEA approval permits us to sell stake in modes as permitted by Sebi. So we may not need fresh approvals," he said.

A panel of ministers on ONGC disinvestment that met yesterday had said that a final decision on it would be taken within the next 10 days.

Weak market conditions have derailed the government's plans to raise Rs 45,000 crore through PSU disinvestment in the current discal. The government has so far been able to raise only Rs 1,145 crore.