The government is likely to open on March 10 the public issues for sale of its 10 per cent equity each in exploration firm Oil and Natural Gas Corp and gas transmission company Gas Authority of India Ltd.
The Divestment Development: Complete Coverage
According to the tentative schedule drawn by the merchant bankers for the public issue of 14.2 crore (142 million) equity shares of ONGC and 8.4 crore (84 million) equity shares of GAIL, bids under the book building process will be invited from March 10 to March 16, with share allotment and price fixing slated for March 26.
An inter-ministerial group will meet during the next two days to finalise the time-table for public issues, sources in the government told PTI in New Delhi.
Government will file the draft prospectus for GAIL public issue by January 20 and for ONGC by the month end.
The sources said book runners are currently carrying out due diligence. "We hope to receive the comments of Securities and Exchange Board of India on the draft prospectus by February 23 and a final prospectus will be filed with the Registrar of the Companies by end of February."
Roadshows for the twin public issues, which at current prices could rake in over Rs 12,500 crore (Rs 125 billion) for the government, are slated in the first week of March.
While a consortium of Kotak Mahindra Capital Co, DSP Merrill Lynch and JM Morgan Stanley are the book runners for the ONGC issue, ICICI Securities and HSBC Securities and Capital Markets are advising Government for the GAIL issue.
The government, in December 2003, decided to sell 10 per cent equity each in ONGC and GAIL through a public offering in the domestic market to meet the unrealised divestment target of Rs 13,200 crore (Rs 132 billion) for the current fiscal.
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