Government to sell 5 per cent stakes in ONGC; to fetch Rs 17,000 crore

New Delhi: Finance Ministry is considering to sell 5 per cent stake in ONGC in the current fiscal, which could garner about Rs 17,000 crore to the exchequer. "ONGC is proposed for 5 per cent stake sale," a government official said. Shares of ONGC on July 8 closed at Rs 397.60, down 4.23 per cent over previous close on the BSE. At the current market price, a 5 per cent stake sale or over 42 crore would fetch about Rs 17,000 crore to the exchequer.

The government currently holds 68.94 per cent stake in ONGC. Sources said the government feels the market sentiments are positive for ONGC stake sale and it is time to encash on the bull run in the markets. The stock markets have rallied over 21 per cent so far this year. The Department of Disinvestment is understood to have floated a Cabinet note for inter-ministerial consultation to take forward the ONGC stake sale. The interim budget had proposed to raise Rs 36,925 crore from stake sale in public sector undertakings.

The full budget for 2014-15 to be tabled in Lok Sabha on July 10 is likely to revise upwards the target. The government had sold 5 per cent stake in ONGC in 2012 for Rs 14,000 crore. Country's largest insurer LIC had then come to the rescue putting in over Rs 12,000 crore and picking up 95 per cent of the total shares on the block.