ONGC to Auction $2.5 bn Share on March 1

Indian state-run Oil and Natural Gas Corporation (ONGC) will launch a share auction on Thursday, March 1, 2012, which is expected to raise at least $2.5 billion as part of the federal government's divestment program.

The share sale, which would be the biggest equity offering this year, will close on the same day, the country's largest oil and gas producer said.

The government will sell 5 percent of its holding, or about 428 million shares, in the offering and the floor price for the issue has been set at 290 rupees a share, ONGC said in a notice to stock exchanges.

The government approved the sale through a share auction, Oil Minister S. Jaipal Reddy said, reviving the government's faltering divestment program.

The sale of ONGC shares is part of the Indian government's divestment program and other state-run companies in which it plans to reduce its holding includes Bharat Heavy Electricals (BHEL) and Steel Authority of India (SAIL).